I spoke to my mortgage broker last week about this. He said the regulations are still extremely strict despite the marketing that is out there. Having an adequate deposit, undervaluing an asset, insisting on having a guarantor or paying higher interest rates are their methods for ensuring security. I understand he is biased and that being upbeat about the Aussie market is his bread and butter. Part of me wonders whether the big banks of the world are idiots who can't manage money or evil geniuses who stand to benefit when the it all collapses. I think they are double dipping and are completely protected for either side of the market.