In other countries (for example the Netherlands) YOU take the loan, not your house. To make sure the bank won't be left holding the bag, you use the house you'r

In other countries (for example the Netherlands) YOU take the loan, not your house. To make sure the bank won't be left holding the bag, you use the house you're about to buy as collateral. In the occasion you stop paying, the bank will foreclose the house, but YOU are still liable for the rest of the loan. If you still don't pay, an official collection agency (not your bank, that would be a conflict of interest) will try to cut a deal, come and take your stuff and/or garnish your wages to pay of the loan. You can insure yourself against calamities like divorce and losing your job, for which the bank will give you a discount on the interest rate. Mortgages are limited by what you can afford, so a predatory mortgage loan is practically an oxymoron. Down payments are uncommon, especially for a first time buyer. The only money you need to bring with you is transaction costs (~5% : taxes, notary, financial advisor, etc.) and whatever you think you need for decorating.