Housing Crash 2019??, page-6

Some stats from UBS, based on a report complied by PWC on Westpac during the Royal Bank Commission:
Figures from the report are taken from a sample of 420 mortgages.

And before you ask: "how representative is the sample of Westpacs entire book?"
Well PWC suggest that it is "broadly representative of the entire population of loans".

- 12% of the applicants in the sample data had a debt to income level of 10x.
- 15% of applicants in the sample data had a debt to income level of 5x.
- Over 60% of all the applicants in the sample data had a debt to income ratio of 5x or more.

- Of the sample data, 29 % of loan assessments had no minimum income verification completed.
- Of the sample data 86 % of loan application were based on the HEM benchmark. (HEM is currently under scrutiny DYOR on what HEM is - I think you'll be surpised.)
- Of the sample data, 66 % of applications included no itemised living expenses.


Does this all mean Westpacs loan book is full junk?
Well time will tell.
Things are NOT looking pretty in Sydney and the pain has just begun IMO.


DYOR. All stats taken from the links above.