[jkulubya]

There’s no reason (other than cost and your current wealth and bank risk management) why you couldn’t get a personal loan for the full purchase price of the house, and pay the seller the cash price. You’d then see your bank account balance go up by the house’s cost, withdraw the cash and then pay the seller.

I’m not sure what bank would give a normal person that kind of money unsecured but you could secure it with e.g. another house you own. Most people don’t have a spare house, so the banks optimise the process for the everyday scenario where the buyer doesn’t need to see their bank balance go up. But money is still being created in there somewhere