Everybody has a mortgage number.  That is, everyone has an amount of money that a lender is willing to lend to them to purchase a house.  Mortgage Lab CEO Rupert Gough talks you through what your mortgage number might be and how you can confidently calculate it.

"When you hear that a friend or a workmate or just a random person in the news was declined for a mortgage what you’re actually hearing is that the mortgage amount they applied for exceeded their personal mortgage number at one or more lenders.

And here’s the first thing you need to know about your personal mortgage number.  It varies from lending institution to lending institution.  And I know what you’re thinking; it can’t be that much, it must be a standardised way of calculating affordability.  But because this is a leveraged transaction, in other words, you only need about $9,000 per $100,000 that you are borrowing, a small difference in the way the banks calculate income makes a big difference in the amount they will lend you..."

You can watch a video on the same subject here: https://youtu.be/2bVeGkW-Q3E

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.

You can watch more of these articles by subscribing to our YouTube channel.
You can follow us on Facebook, Instagram, Youtube and LinkedIn.