29.2% of Renters Can Afford A Mortgage For Their First Home | Ep. 124

In this episode, we discuss a recent Stuff article that Ed wrote and had published. Looking at data from the Ministry of Housing and Urban Development, he found that the just shy of a third of renters actually could afford to pay for a mortgage for their first home. 

With deposit requirements for the First Home Loan falling to 5%, he writes that it's puzzling that only 5% of renters each year become homeowners, when many more could afford it.

It seems there is a perception gap. 62% of Kiwis surveyed by IPSOS said that they didn't believe they could afford a home in their local area. Again, this doesn't match with the data because 72% of Kiwis either already own their own home, or could afford it according to the Ministry's data. 

There is a difference between what Kiwis can do, what they choose to do and what they say they can do. 

We also mentioned the Epic Guide to Mortgages which Ed wrote over the Christmas break, which may be useful if you are considering taking our a mortgage in 2020.