Originally posted by Austrokiwi
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At the time, pre 2005 I was spending huge amounts of money in NZ. I think the most likely answer was he who spends more gets more. Also, from being on this web board, I’ve learned that it is more common for New Zealanders to enter into interest only loans than conventional loans. We did use a pretty crappy solicitor to make a house purchase at that time – so the resultant lending may have been a result of his (the solicitors') ineptitude and the banks eagerness to lend us more money. Remember, as far as the bank is concerned our debt is their asset.
Which brings us back to my original point: what happens when market value falls below your mortgage note? Or you just can’t pay?
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