The parent comment was about how you should only take loans if you expect a return on the investment greater than the interest. Not about the bank.

I think you've misread. The thread is about consumers of credit using it to make themselves money.

Of course they make money — but they take on no real risk. The home owner (who is taking on the risk) likely stands to make much more money than the lender in appreciation.

(Never mind the homeowner has to live somewhere regardless — and anywhere but mom's basement [1] is going to charge rent which would, by comparison, be throwing money away.)

[1] Okay, my mom charged me rent to live in her basement when I was 19 or 20 and needed a place over the summer.