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Fundamentals Risk

One of the initial drivers of the global financial crisis over 2007-2009 was the practice of US banks to make imprudent loans to individuals with little or no initial deposit (down payment). In addition, honeymoon interest rates were charged, and when these interest rates increased, homeowners struggled to pay their mortgage. (
Why do you think banks require a deposit (down payment) when individuals purchase a house?
Are there any products available to protect banks from the risk that borrowers will default?
What minimum percentage deposit do you think is appropriate? What percentage deposit are you targeting when you purchase a house, and why?