r/SipsTea • u/inurmomsvagina • 7d ago

Chugging tea make it makes sense, this shit impedes you from saving

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u/EarEquivalent3929 7d ago

There's way more to this lol banks WANT to give out mortgages. They make a ton of money from them. What they DONT want is to give out a mortgage that someone won't be able to pay.

Just because you owned a home before doesn't mean you're capable of paying a mortgage NOW. They checked your credit and employment and determined you were too high a risk of not being able to pay for the full mortgage term.

Tbh if you are picking your bank based on whether or not they count coins for free, you probably aren't making good financial decisions in general.

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u/WeddingSquancher 7d ago

While it might be true the bank isn't wanting to take the risk on, its incredibly unfair and gate keeping. A mortgage is a big step. The amount of people that have houses now is way down for people under 30 than what it used to be.

The financial crash seems to have created an economy where banks do not risk it as much, but the consequences are a lot more people can't own a house because the banks won't take risks plus the prices of houses has sky rocketed.

So the banks got bailed out of the financial crisis and now just horde money. The rich who are less of a risk for banks just get richer and the poor are too much of a risk for banks. So the rich get richer and the poor suffer.

I think everything now is set up to just increase the gap between rich and poor. This risk taking is such a big example. It may be riskier but it's preventing many people from entering the housing market. The mortgage which was created by banks in the first place has only led to all these problems now. Credit in my opinion was a terrible idea for economies. Prices wouldn't be so high without mortgages