This is the rationale for extending the loan-to-value ratio for first-time buyers from 80% to 90%, which the 2014 budget has improved to 95% for eligible borrowers, subject to a partial state guarantee.
We also introduced a debt-to-income ratio, for two reasons: first, to prevent households from getting trapped in excessive debt; and second, to force borrowers to make informed decisions when buying a property. These will save them from the sale-by-levy trap of foreclosures against defaulting borrowers.