housing affordability, page-11

  1. 1,088 Posts.
    the banking model does not account for kids, job losses career changes etc. It calculates 2 wages by 30 years thinking your going to work 40 hrs a week paid until your 65 then gives you a loan for 800K.

    Reality check for the banking model should loan 95% of one wage earner and about 65% of the other

    the figure would come to about 620K max therefore bringing the average earnings multiple down
 
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