how do people own homes in countries where the mortgage doesn’t exist?
In: Economics
Where I’m from, you can get a loan to buy a property. You need to have a steady income and your company needs to be profitable. Then you pay back that loan over the next 30 years.
You cant take out a mortgage loan on a house you don’t own. You can on a house you DO own, but even then there are conditions you need to meet (what is the loan for, can you pay it back etc…)
Usually people put down a % in cash and the bank covers the rest. The more the bank covers, the more you end up paying them ofc. If you fail to make a payment you can do some refinancing (which is kind of like a second loan), or if you can’t the bank buys out your house, and maybe charges you rent till you pay back not sure entirely.
But even the market here is favourable towards big cash money buyers who acquire property and then jack up the rent. Nobody does nothing since we are pretty sure the private companies are in it with the politicians so the government is asleep at the wheel, just like America.
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