I bought a house recently and learned how in Canada you literally cannot buy a house you can't afford if your finances are stressed. They test your income for a hypothetical rate hike and your payments must not exceed a certain percentage of your income. There's other safeties too, such as requiring 5% down but significantly incentivising putting >= 20% down.
Can we not have the same kind of thing for all loans? Ie. It becomes illegal to lend money with terms that the borrower cannot reasonably afford?
On another note:
"Over 10 months, The Times interviewed 450 people, built a database of every medallion sale since 1995 and reviewed thousands of individual loans and other documents, including internal bank records and confidential profit-sharing agreements."
From this I finally grokked what I'm paying for, and just subscribed to my first periodical.
Can we not have the same kind of thing for all loans? Ie. It becomes illegal to lend money with terms that the borrower cannot reasonably afford?
On another note:
"Over 10 months, The Times interviewed 450 people, built a database of every medallion sale since 1995 and reviewed thousands of individual loans and other documents, including internal bank records and confidential profit-sharing agreements."
From this I finally grokked what I'm paying for, and just subscribed to my first periodical.