APRIL 2020 PORIRUA CITY WWW.INTEREST.CO.NZ /
[email protected] / P. 09 3609670 PORIRUA CITY HOME LOAN AFFORDABILITY REPORT April 2020 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 Take Home Take Home April 20 36.1% April 20 21.8% April 20 13.7% Pay Pay Pay $1,648.44 April 19 27.9% $1,446.82 April 19 28.2% $2,013.47 April 19 17.8% per Week per Week per Week April 18 27.6% April 18 24.6% April 18 18.0% 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 Porirua City.