what some people dont get or understand is that all prime loans are mortgage insured whether over 80% or under 80% LVR.
Only difference is the bank covers the premium and soemtimes self insureres when under 80% LVR and charges the borrower when ovr 80% LVR due to the higher premium payble to the mortgage insurer.
On top of this, loan books are sold off in groups by banks to securitiers and therefoe become the manager of the loans, not the lnder per se.
So they dont care what the market does
The bank wont lose even with price falls of 20% or 50% or even 80%..........dont believe the hype.
