"it's normal here for people to max their loans and go for interest-only repayments.."
And then end up with an unpayable principal?
That's how governments create housing bubbles.
And then end up with an unpayable principal?
That's how governments create housing bubbles.
You're basically just renting the house from the bank. And this is common (not good, but common) in every country where interest is tax deductible, because you can multiply your 'renting' power by your top marginal tax rate.