Borrowers who have a lower level of income relative to the periodic loan payments are more likely to default on their mortgages.

Question

Quizplus · Accepted Answer

This statement is true. Borrowers with a lower income may struggle to make regular loan payments and are therefore at a higher risk of defaulting on their mortgages. Lenders often consider a borrower's debt-to-income ratio when assessing their eligibility for a mortgage to lower the risk of default.

Borrowers Who Have a Lower Level of Income Relative to the Periodic