Quote:
Originally Posted by Gravdigr
Yeah, I ain't about to read all that rfn...How does "Guidance Residential" make money on an interest-free home loan? In a sentence. Or two.
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There are a few different ways. One way is, rather than loaning you the money to buy a house, they buy the house on your behalf and then you pay them back for it, whilst they retain ownership until the debt is cleared. They make the profit by selling the house to you at higher than the asking price - instead of their profit coming through interest it comes directly from the sale.
There's more to it than that, but we've reached the limits of my ability to understand bank stuffs.