AUGUST 2019 WHANGANUI DISTRICT WWW.INTEREST.CO.NZ /
[email protected] / P. 09 3609670 WHANGANUI DISTRICT HOME LOAN AFFORDABILITY REPORT August 2019 Home loan affordability is a measure of the proportion of take-home pay that is needed to make the mortgage payment for a typical household. If that is less than 40%, then a mortgage is considered ‘affordable’. The following are typical assessments for households at three stages of home ownership. FIRST HOME BUYERS 25-29 YOUNG FAMILY 30-34 OLDER FAMILY 35-39 First home buyers earn a medi- Young family buyers earn medi- Older family buyers earn medi- an income for their age group, an incomes in their age bracket, an incomes in their age brack- and buy a first quartile house and buy a median house in et, and buy a median house in in their area. Both parties work their area. One partner works their area. Both partners work full-time. half-time. full-time. Mortgage payment as a Mortgage payment as a Mortgage payment as a percentage of the take home pay percentage of the take home pay percentage of the take home pay Take Home August 13.6% Take Home August 11.6% Take Home August 9.6% Pay 19 Pay 19 Pay $1,456.54 19 August 12.0% $1,219.22 August 14.1% $1,597.15 per Week per Week per Week August 9.1% 18 18 18 August 17 10.9% August 17 14.9% August 17 11.3% This report estimates how affordable it would be for a couple This report estimates how affordable it would be for a couple This report estimates how affordable it would be for a couple where both are aged 25–29 and are working full time, to buy a with a young family to move up the property ladder and buy their who are both aged 35-39 and working full time, to move up the home at the lower quartile price in Whanganui District.