I think the income multiple is too simplistic and will inevitably lead to problems.
As the banks are well aware the issue when assessing risk isn't debt to income it is serviceability! The debt to income talk is purely to try and stop people from buying multiple houses. As others have said there are alternatives and it just will not work. All it will do is expose many, many individuals to even greater risk through non-bank lenders and higher rates/costs of business.
Last edited by donthatetheplayer; 17-06-2016 at 09:57 AM.
“Our favorite holding period is forever.”