The issue is what the lender will accept as a suitable number.
Try going for a $2 million loan for a house that is valued at $1 million. It's up to the lender to assess its risk in lending you the $2 million you asked for.
The risk is worth it if the loan is repayed.
That's how capitalism works
Having a third party adjudicate on the risk the bank takes and then punish the lendee is how communism works comrade
