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Do you have a source for this? I just struggle to believe that lenders would make loans like that on a large scale, without some major caveats.
by lend000 5y ago
Do you have a source for this? I just struggle to believe that lenders would make loans like that on a large scale, without some major caveats.
- TheCoelacanth 5y agoI don't think the loans actually need to be structured like that to achieve the same effect. You can just pay off the loan by taking out another loan. There would be some risk that you couldn't get another loan, but if you're only borrowing 10% of your net worth, it's probably an extremely small risk.
- mewpmewp2 5y agoRelated to the topic, what is interesting, is Switzerland home loans. When usually countries have max periods of 20-30 years, Switzerland has periods of 50-100 years, so you very well would not pay it back before end of your life.