Australia leads the sub-prime mortgage market
Subprime mortgages in the USA contributed to the global financial crisis in 2008 but in Australia subprime mortgages are getting more popular.
Australian home loan lenders have issued $3 billion worth of non-conforming (sub-prime) home loans over the last 18 months according to ratings agency Moody’s.
Moody's analyst Robert Baldi said Australia is leading the subprime mortgage market.
Most non-conforming loans are being written by non-bank lenders.
Source: ABC News