"Even if Australians cant walk away from their houses like...

  1. 217 Posts.
    "Even if Australians cant walk away from their houses like American can, if they go broke and default and the bank sells the house at a loss. The bank still in the same position as the Australian is bankrupt."

    That's why Australian banks are asking for 20% deposit in cash as they want you to have a lower LVR. Or, they cross collateralise loans with other loans secured by other property so if there was a "crash" your total LVR is lower anyway, banks sell and are still in front.

    Maybe if there was a "crash" of 40 - 60% they may loose money but I don't believe a crash like that will occur.
 
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