This article explains mortgage stress and discusses how people can easily find themselves in too deep when buying a home. It shares the experience of a young couple buying their first home and offers some practical tips for avoiding potential mortgage stress.
Technically speaking, if more than 30 percent of your pre-tax income goes towards paying your mortgage, you meet the common definition for being ‘mortgage-stressed’ – and it’s more common than you think!
When thirty-something professionals Harry and Sally were house hunting for their first home they were on high incomes and had saved a healthy deposit. Even so, they cautiously did their homework, entering their information into several bank online calculators to determine their borrowing capacity.
To download and use this article, make sure you're logged in. No login details? Register above for full access.