Credit cards are a common pitfall for first home buyers. Mortgage Lab CEO Rupert Gough takes you through exactly how much your credit card limits impact your ability to get a mortgage. 

"One of the first things you need to know is the difference between a balance and a limit. You might have a limit of $10,000 and be able to borrow up to that amount. But you may never have spent more than $1,000 on your credit card. 

Unfortunately, when you're applying for a mortgage, the bank has to assume the worst case scenario. And that would be you blowing out their credit card or maxing it out to its limit..."

You can watch a video on the same subject here: https://youtu.be/c3du_4-M6PA

If you are unsure where to start or have any questions, don't hesitate to contact the team at mortgagelab.co.nz/contact-us, we're here to help.

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