"2 year honeymoon period these loans become above standard rate loans... "
yes but all the borrower needs to do after the honeymoon period is move to another bank...simple as that.
Anyone paying even close to the standard variable rate ever.....or even after the honeymoon period is up..... has rocks in their head. They deserve to lose their houses if they are that stupid.
Its like paying full tote for a new car.
believe me the banks wont go broke....they have twice the funds in their coffers as they lend out.....lets not get carried away.
And all loans over 80% LVR which are the high risk loans are covered by mortgage insurers.
