Almost a quarter of borrowers have debt-to-income ratios of 6 or higher
With property prices continuing to rise, it can be helpful to qualify for a higher loan amount, to give you more options. So it’s interesting to discover, based on the latest banking statistics, just how many Australians are being approved for relatively large loans.
In the March 2024 quarter, 23.8% of new home loans (by value) had a debt-to-income ratio of six times or greater, according to the banking regulator, APRA.
While that’s down from a recent high of 40.7% in December 2021, it shows that lenders are willing to extend significant amounts of credit to a lot of borrowers.
Please note, though, that this is decided not just on a borrower-by-borrower basis but also a lender-by-lender basis.
That’s because two people, even with similar financial circumstances, can have very different amounts of borrowing power with a particular lender; and the same borrower can have very different amounts of borrowing power with different lenders.
So please get in touch if you’re planning to buy a property. We understand the lending policies of many different banks, and know which ones would be suitable for someone with your profile.
Our team is here to provide expert guidance and tailored solutions that work for you. Reach out today and experience the Finestream Standard, finance, the way it should be.
