I understand your point, however it’s flawed from the start in that government interest rates should not be used for a means of risk assessment, in my opinion. Your argument makes sense for private institutions. Bank loads should follow your logic. The government, however, should use interest rates to funnel new money where it’s needed most, and not towards private investors.
Agreed, instead of paying for some of it, enforce a strict 3% interest rate (with the remaining amount being paid for by the gov), this prevents the base cost of the home being raised by the amount of the subsidy
They should give lower interest rates to those with less means instead of the other way around.
deleted by creator
I understand your point, however it’s flawed from the start in that government interest rates should not be used for a means of risk assessment, in my opinion. Your argument makes sense for private institutions. Bank loads should follow your logic. The government, however, should use interest rates to funnel new money where it’s needed most, and not towards private investors.
deleted by creator
I guess my issue is imagining private banks being bypassed, but it seems you’re saying that isn’t a thing in the real world.
deleted by creator
Agreed, instead of paying for some of it, enforce a strict 3% interest rate (with the remaining amount being paid for by the gov), this prevents the base cost of the home being raised by the amount of the subsidy
deleted by creator