I recently purchased a property in Asia, and despite being on a good income, reasonable length of time in my job and a good credit history, I was unable to secure 90% finance. 85% was the maximum I could get, a deposit of less than 20% is regarded as risky and these loans carry a higher interest rate and are hard to get.
No borrowing 105% of the property value here. However local banks are solid and actually getting increased deposits in these uncertain times. No government bail outs necessary due to the strict regulations.
Seems that the sort of people who can save up a 20% deposit and therefore have a large vested interest in the property, are the sort of people who keep up with the repayments. Unlike those who got more than the place was worth and simply turn over the keys in difficult times, leaving the bank to bear the loss and smiling because it was cheaper than renting.
