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.
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