Home Loan Affordability

•    In October it took 80.5% of one median income to pay the mortgage on a median-priced house, compared with the high point of 81.3% in August this year, 70.1% in October 2006, and 42.9% 5 years ago. (A mortgage is considered affordable when repayments are no greater than 40% of weekly take-home pay.)

•    The median house price in October was $350,000. In Auckland it was $445,000 or 11.8 times the median income and in  Wellington $365,000 or 9.5 times median income. Five years ago the median was $188,000 (Auckland $279,000 or 8.7 times median income and Wellington $205,137 or 6.4 times median income).

Source: www.interest.co.nz.Please refer to this website for the assumptions made in arriving at the above conclusions. Statistics quoted are from the Fairfax Media home loan affordability series.