Yes ratios are important . After all , if the maths doesn't work we end up with another gfc. And you are correct when you say that the lenders may change their mind down the track .
But that's the point . Lenders are supporting the current ratios so therefore they think that they are affordable longer term .They are hardly going to lend you money that you can't pay back .
Even though there has been significant societal change in the last few decades , I think it's only being cemented now . Accepted by the mainstream if you like . Apart from acceptance of sexual and racial differences , what about the changes to the financial industry ? 30 years ago an average punter couldn't borrow money for a holiday , tv or medical procedure like they can now . Nor could they get a margin loan and trade crazy financial products such as they can now .
Time to get used to the new normal , whatever that is .
