The topic of mortgages and homeownership has become increasingly prevalent in IELTS Writing Task 2, appearing roughly 2-3 times per year in recent examinations. Based on analysis of past papers, questions about housing affordability, mortgage regulations, and financial decision-making are particularly common in countries with active real estate markets like Australia, Canada, and the UK.
Young couple consulting with financial advisor about mortgage options
Sample Question Analysis
Some people believe that banks should make mortgages easily available to help more people buy homes. Others argue that strict lending requirements are necessary to prevent financial problems. Discuss both views and give your opinion.
This question requires:
- Discussion of two contrasting viewpoints about mortgage accessibility
- Analysis of potential benefits and risks
- Clear personal stance with supporting arguments
- Relevant examples and explanations
Band 8 Sample Essay
The debate over mortgage lending criteria reflects the complex balance between homeownership accessibility and financial stability. While some advocate for easier access to home loans, others emphasize the importance of strict lending standards. In my view, while homeownership should be encouraged, maintaining prudent lending requirements is crucial for economic stability.
Those supporting easier mortgage access argue that it promotes social equality and economic mobility. When banks reduce down payment requirements and income thresholds, more families can escape the rental cycle and build equity through homeownership. For example, in Singapore, government-backed mortgage programs with relaxed criteria have helped thousands of middle-income families purchase their first homes, contributing to social stability and wealth creation.
However, critics maintain that loose lending standards can lead to severe consequences. The 2008 global financial crisis starkly demonstrated how subprime mortgages and inadequate risk assessment can trigger widespread economic turmoil. When borrowers cannot meet their mortgage obligations, it affects not only individual households but can also destabilize entire financial systems. Furthermore, easier credit access often leads to inflated housing prices, making properties even less affordable in the long run.
I believe the optimal approach lies in maintaining robust lending standards while implementing targeted support programs. Banks should thoroughly assess borrowers’ repayment capacity through comprehensive income verification, debt-to-income ratios, and credit history evaluation. Simultaneously, governments can offer assistance through subsidies, tax incentives, or special programs for qualified first-time buyers, ensuring responsible homeownership remains achievable for deserving candidates.
Band 6.5 Sample Essay
The question of whether banks should make mortgages easier to get or keep strict rules is important today. Both sides have different opinions about this issue.
People who want easier mortgages say it helps more people buy houses. When banks don’t ask for big down payments, normal people can stop renting and get their own home. This is good because owning a house helps families save money and feel more stable. For example, in my country, many young workers cannot buy homes because banks want too much money first.
On the other hand, strict rules are important too. If banks give loans too easily, people might borrow more money than they can pay back. This happened in 2008 when many people lost their homes because they couldn’t pay their mortgages. Also, when loans are easy to get, house prices go up a lot, which makes things worse.
I think banks should be careful about giving mortgages but also try to help good buyers. They should check if people have enough money to pay back loans, but maybe governments can help first-time buyers with special programs. This way, we can have both safety and fairness in the housing market.
Essay Analysis
Band 8 Essay Strengths:
- Clear and sophisticated argument structure
- Advanced vocabulary and complex sentences
- Relevant examples and detailed analysis
- Balanced discussion with clear personal stance
- Strong topic-specific vocabulary
Band 6.5 Essay Limitations:
- Simpler vocabulary and sentence structures
- Less detailed examples
- Basic argument development
- More general statements
- Limited use of complex language
Key Vocabulary
- mortgage (n) /ˈmɔːɡɪdʒ/ – a legal agreement by which a bank lends money to buy property
- lending criteria (n) /ˈlendɪŋ kraɪˈtɪriə/ – standards used to evaluate loan applications
- subprime (adj) /ˌsʌbˈpraɪm/ – relating to loans made to people with poor credit history
- debt-to-income ratio (n) /det tu ˈɪnkʌm ˈreɪʃiəʊ/ – comparison of monthly debt payments to income
- equity (n) /ˈekwəti/ – the value of a property after subtracting any mortgage debt
Consider practicing with these related topics:
- Government subsidies for first-time homebuyers
- The impact of rising property prices on young people
- Regulations in the housing market
- Alternative housing finance models
Share your practice essays in the comments for feedback and discussion!
