When the decision was made about two years ago, it was not at all popular with many to introduce a 85% mortgage ceiling. The Loan and Credit has now come to the conclusion that they want to keep this ceiling.
I have personally constantly defended this decision
And it follows two facts and that is that it is not a right to buy an expensive house and that the risk is not as great.
Of course it would be nice if we could all afford a big and nice house for several million USD. But that’s not it at all. I myself am single and have a house that was bought for just under the million. This is something that I must be satisfied with considering my finances. Buying something more expensive is not a right, but you have to live by your financial circumstances. The 85% limit only puts these within a more reasonable level.
Then there is clearly a lesser risk of having a loan of 85% than well above 90%. Sure, it is likely that the house will not lose value, but you never know. A while ago, I took up an area in the US where the houses had been worth almost zero kroner. Of course, it does not matter what degree of leverage you have.
Therefore, I find no reason to change my perception that this ceiling is good. Then I am aware that it can be tough for younger people to find a first house, for example. But here it is actually often about where you look.
Where I live, the houses cost around a million
This is a mile from a slightly larger town where they cost around USD 500,000 more. And I live three miles from the city where you can spend 2 million or more instead. But at the same time, there are communities a bit away from me where the houses clearly cost less than where I live.
Everyone is within commuting distance from the larger city and then you simply have to choose a place to live by economy. If you are younger or older and have a job, it is no problem to find a home if you only look where you can afford. Then you want to live in another place is a completely different thing. But this I think as I said was that you have no right to.
If smaller houses or similar are being built due to this roof is also a difficult question. Now a little house was built before too. Then I personally think that it is better that fewer houses are built than that large sections of the population have financial problems.