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Aliantha · 03-04-2008, 04:09 PM

There are plenty of financial analysts who suggest that the amount should be no more than 25% of gross income and moving over 30% is what's caused the problems you're having in the US and what has also caused the problems we're having here.

Yes I know that the problem is exacerbated by 100% financing of home loans, but that's not the only reason this problem has occured.

You also have to look at the fact that some incomes are high enough to support a 50/50 ratio as you're suggesting - if the mortgagee lives within their means. Most don't. - but an average income is not.

03-04-2008, 04:09 PM	#14
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	There are plenty of financial analysts who suggest that the amount should be no more than 25% of gross income and moving over 30% is what's caused the problems you're having in the US and what has also caused the problems we're having here. Yes I know that the problem is exacerbated by 100% financing of home loans, but that's not the only reason this problem has occured. You also have to look at the fact that some incomes are high enough to support a 50/50 ratio as you're suggesting - if the mortgagee lives within their means. Most don't. - but an average income is not. __________________ Kind words are the music of the world. F. W. Faber