if banking systems were strong anywhere - which they aren't, they would not need deposit insurance from governments and other measures to support them
if it were up to me the Australian Tax Office would be the only entity able to loan out for property
for starters its our tax money that is back stopping the banks and mortgages, so they are the logical choice
secondly the formula for who can get a loan and for how much can be best determined by them (and automatically by computer) and if the formula is written into law and based on total tax paid and variability of income it would be fair and it would also minimize the cash economy
for a bank to determine a candidates suitability for a loan is a much more difficult process, pre GFC I took out a no doc loan and I didnt even have a job at the time, just the 30+% deposit that was required.
