It would be interesting to see how many loans are actually written at the upper end of peoples affordability limit.
Personally I got pre-approved for like $880,000 initially, after more information was added to the application this came down to around $650,000. Still we only ended up taking out a loan for $400,000.
We are comfortably paying down 3 times the standard repayments so could easily service a debt level of $880,000 but for sanity sake it's not worth it. Right now if we both lost our jobs we'd be fine for 12+ months and that's an absolute worst case scenario. Life is a much happier place when you aren't living pay cycle to pay cycle.
