The bank will want a15% downpayment so that if you go backrupt and default on your mortgage they can take your house and sell it for up to 15% less than you paid for it and still make all their money back. It's like an "insurance" that the bank is guarnateed to get their money back. If any of all of that 15% of the money is borrowed, then you're paying that loan back in addition to your mortgage payments, so its really just the equivalent of asking for a bigger mortgage, which the bank doesn't think you can afford. They would rather have you pay interest for 5 years (or however long you make your mortgage for) than have to seize your house and sell it for a minimal profit. Its better for them to collect the interest from you. At least that's that way I understand it...
|