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Australian lenders 'more genero...

Australian lenders 'more generous' than those in UK and US

Australian mortgage lenders are more generous than their US and UK counterparts, a new report has revealed.
 
People looking to invest in the Australian property market are likely to be able to borrow more from the country's leading banks than if they were interested in purchasing a new home in the UK or US, the Sydney Morning Herald reports.
 
This is the finding of a new report from analysts at Macquarie, who found that Australian banks lend an average of 25 per cent more to home buyers than their overseas counterparts, providing international property investors with a good reason to invest in the market down under.
 
The Macquarie report stated: "UK and US banks were generally prepared to lend 20 per cent to 25 per cent less than Australian banks for owner-occupier debt, despite lower interest rates in these markets."
 
Although the 'big four' Australian banks have reduced the maximum sums they will lend to homebuyers by 19 per cent in recent years, they still come in ahead of lenders in other major global property markets.
 
The average sum borrowed by property buyers down under came in at $570,000 in 2016, ahead of the equivalent of $460,000 in the UK and $440,000 in the US.
 
Australia's figure was down somewhat from the previous year, when $680,000 was the average sum lent by banks to homebuyers, but Macquarie explained: "While this reduction appears significant, we note that current borrowing capacity remains above the 2011 levels and we continue to expect further tightening in borrowing limits."
 
What's more, the Australian Prudential Regulation Authority has stated that the quality of bank lending has improved throughout the country over the past couple of years, which was vital amid the recent house price boom across the nation.
 
The market closest to Australia in terms of the average sums it lent to homebuyers was found to be Canada.

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