Financial Affairs

Women are better borrowers, poll finds

A survey released to celebrate International Women’s Day found that women are better borrowers than men.

Suncorp delved into its customer data and found that women were becoming increasingly influential in the real estate market: in fact, they accounted for 48% of single-borrower mortgage loans at Suncorp, and with a lower loan-to-value ratio than men, deposits and borrowed less.

“Even before the onset of the pandemic, almost half of Suncorp’s single-borrower mortgage applications were women, but the growth in loan applications and amounts has increased dramatically,” said Bruce Rush, executive managing director. by Suncorp Home Lending. “Five years ago the average loan for a woman was $ 240,000 and today it is $ 275,000.”

“Several factors have contributed to this, including the fact that customers are saving and depositing more during COVID-19, which has allowed them to speed up their mortgage applications, take advantage of our fixed-rate home loan offer of 1, 89% or to opt for our homecoming mortgage loan, which offers a low variable rate in exchange for a no-frills mortgage while having access to very important features.

In particular, a growing market was the vital demographic of the 25-30 year-old first-time homebuyers, with a higher number of single borrowers living in large cities.

“Historically, many of our clients between the ages of 25 and 30 have bought their first home or are discussing ways to get into the real estate market with our mortgage team,” said Rush. “However, a strong independence of women, coupled with the active pursuit of their career goals, means that they have the opportunity to establish themselves financially.”

As for being better borrowers, Rush said it was all down to the loan-to-value ratio. “A loan-to-value ratio is determined by how much a customer deposits, so if your down payment is larger, you borrow less,” he said. “Our data tells us that over the past year, women have had a lower loan-to-value ratio than men, which means women are making larger down payments, allowing them to borrow less. “