Dhuyyou just dont get it do you, your admin people on $50K+ can...

Dhuy

you just dont get it do you, your admin people on $50K+ can borrow up to $260K

what are they going to do when interest rates are up and they cant afford to pay the repayments?

who are they going to sell their house too at the same "flat" price when peoples borrowing power has droped from the rate rises and can not raise the cash to buy the house at that same price

what is the seller going to do? do you think the bank will say, its ok mate, i know we upped the interest rates, you can have a few years to find a buyer while you make no paymens back to us?

of course not! the bank is going to go YANK and kick em out and sell it at auction the next month at the most somone is willing to pay for it

this is whats happening in america now! this is what is making subprime a problem

look at the australian housing market when interest rates where high last