The debt ratios aren't directly comparable, because there are significant differences in the way housing finance is conducted in the two countries. Unlike the

The debt ratios aren't directly comparable, because there are significant differences in the way housing finance is conducted in the two countries. Unlike the US, Australian house loans are never non-recourse. This means that borrowers tend to continue to pay them off even if the notional value of the asset drops below that of the outstanding debt - they can't just mail the keys back to the bank and get out of the loan. Most housing finance in Australia is provided through one of the "big 4" very large and heavily regulated banks - small regional banks are not a significant portion of the Australian market. Australian housing loans also tend to be variable-rate, as opposed to the fixed-rate that's the norm in the US.