COVID and the housing market

[Mad Mike]

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You may be right about uninsured. Most of that was wrt to 20% down. As for the risk to the buyer, if the bank is approving the loan based on insane covid pricing and then only forcing you to have 20% down from that number, it is a defacto low-ratio mortgage as your 20% may be entirely wiped out the day you sign and the bank has 100% of the equity in the property (without insurance, unless they are forcing buyers to pick up insurance as part of the shell game).

No, banks are taking a more holistic view of the debtor, not just the equity in one asset.

Lenders realize the default rates are low for people with equity, decent credit and moderate TDS ratios.

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