"Were any of these people to sell - will get worse - to re-enter in the future they will NEVER qualify. Will need 20% dep, no FHOS, no stamp duty rebate.Save $100,000 plus thats what is being asked of them."
You just don't get it do you
As opposed to it will be so easy for them to get back in if the bank forecloses on them
when they will then be faced with needing a 20% deposit, no FHOS, no stamp duty rebate to re-enter the market
AND
a bad credit history due to the foreclosurer and walking away with even less after the sale due to the bank selling the property at a lower price and the loan payout potentially increasing due to beiong in default
As for the 1% of the population, where did you get that figure from
but assuming 1% is correct that is 250,000 people sitting close to the edge with the very real potential of the bank foreclosing
