MAY 2016 AUCKLAND NORTH SHORE WWW.INTEREST.CO.NZ /
[email protected] / P. 09 3609670 AUCKLAND NORTH SHORE HOME LOAN AFFORDABILITY REPORT May 2016 Home loan affordability is a measure of the proportion of take-home pay that is needed to make the mortgage payments for a typical household. If that is no more 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 Second Rung - YOUNG FAMILY 30-34 Second Rung - OLDER FAMILY 35-39 First home buyers earn the me- Young family buyers earn medi- Older family buyers earn dian income for their age group, an incomes in their age bracket, median incomes in their age and buy a lower quartile priced and buy a median priced home bracket, and buy a median home in their area. Both parties in their area. One partner works priced home in their area. Both work full-time. half-time. partners work full-time. Mortgage payments as a Mortgage payments as a Mortgage payments as a percentage of take home pay percentage of take home pay percentage of take home pay Take Home May 16 48.7% Take Home Take Home Pay Pay May 16 46.1% Pay May 16 27.4% May 15 52% $1,696.38 $1,466.90 May 15 47.8% $2,040.81 May 15 29.1% per Week May 14 44.5% per Week per Week May 14 50.3% May 14 29.5% May 11 34.9% May 11 42.3% 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 Auckland North Shore.