You honestly believe the banks are just going to write off the loss under inflation? They'll ramp up rates to the moon. You won't get a free pass on commodities due to inflation. The banks will make sure of it. Right now, they're trying to kick start the economy by issuing debt. That won't last. At some point, interest rates are going to have to go up and go up sharply. If you don't have a job to make the payments - banks win. If you DO have a job and not a fixed rate long term - banks win. If you DO have a job AND a long term fixed rate - banks will still find a way to win. Don't bet against the house mate, they've rigged the game. The vast majority of folks I saw lose homes here in Australia during our last major recession (1990s) were on mortgages about 25% of what they are as standard today. Unfortunately, we have an entire generation of fearless investors come on board since then who have only ever known a boom cycle & been encouraged relentlessly to take on debt by the bigger end of town. The lesson that will be learned later will be sobering to say the least.