Thanks, while being denied a mortarge might like discrimination (and the bank might get sued accordingly) it's still a significantly higher risk of default or insolvency due to an untimely demise of the mortgager? It is my understanding that fixing the interest to accomodate for that risk is a way to go but still... (Additionally: in the referenced question the person declares a retirement fund of 4k only.)

retirement fund is not the same a social security and a pension. Those are guaranteed streams of income.

Pensions and social security might count while alive. Still - however morbid this may sound - the risk of death increases with age.

@Ghanima Don't forget that a mortgage is backed by the house. If the bank lends money in line with the value of the house, they can get their money back if the borrower dies

And since interest on mortgages is "front loaded" so they are making interest (aka profit) very early on. They don't need you to pay the entire 30 years to make the bulk of their profits.

And the longer you pay, even just a few years, the more interest you give, (probably) the property is worth more and they can sell it on the open market.

Obviously the devil is in the details, but giving mortgages isn't out of control risky for a bank. Even for 30 year notes.

I would like to see a statistic about just how many 30 year notes actually go for 30 years. Or better yet a break down about how long the average mortgage is kept

@MrChrister, thanks for pointing that out.

@Ghanima Just remember that banks are good for much, but they are pretty darn good at making money and stacking the deck in their favor

Well, I've never doubted that...