Buying with no depositSunday Herald reported that the banks are...

Buying with no deposit

Sunday Herald reported that the banks are pushing the mortgage envelope again chasing business for people who have not been able to save a deposit!

Choice also reported that banks have been inflating the value of the property 15% to 20% over the actual value in an over-gearing nightmare to come

Some banks allow the cost of the mortgage insurance to be added to the loan which further over-gears the borrowers

Australian Banks think they can afford this as they were rated as having the 4th most profitable margins in the world

But as with everything else if there is no foundation you will sink and many Australian properties have exceeded their actual intrinsic value for no other reason than greed and the marketing hype