I have no problems at all with increased stress testing. I wouldn’t mind it if you needed 20% down to secure a mortgage in all honesty. *Anti-big business bias here*. The housing market is one of those weird things where I feel like there is nothing but incentive and benefit for the controlling parties to have costs as high as possible, and giving easy mortgages does nothing but help that. Mortgage firms, builders, realtors all make money directly proportionate to the sale price of the home. By taking on slightly more risk by giving loans to anyone they can, costs are naturally inflated, and the cycle of over valued housing ‘owned’ by over-stretched mortgage payers carries on.
Housing may have been a great investment years ago. Run the figures on an average single family dwelling, including the cost of mortgage insurance, interest and the cost of your initial capital, and it’s absolutley absurd what it actually ends up costing. Every time a young couple gets approved for a mortgage at the top of their ‘affordability’ the inflates price is maintained, while a 25 year albatross is proudly clinched around their necks.
|