I see a lot of statements being made about the quality of bank lending in Australia for residential mortgages
if you look at a typical scenario here in Perth - when I came here it was "average" to have a 30k deposit, buy a 120k house on a 60k income
move forward 10 years
lets say a 60k deposit an 85k salary and a 450k house
blind freddy can see that a combination of continuing low interest rates and high employment is needed to keep this party going
Im hearing stories of people with good jobs and mortgages worrying about how much food they get to eat each week
you can call it a good quality loan if you like, many bankers, economists and analysts do, but in my opinion its lending built on a foundation of sand, not stone
