Dax Stanley explains the 30% rule: keep mortgage payments to roughly 30% of your gross income. Recent rate hikes have pushed many borrowers to 50%, which is risky compared to the traditional safe level.
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How much can I borrow through a mortgage? So detailed question, so where do I start? So realistically if you want to work it out you should be only to be safe, 30% of your income, okay? So you can work that out. Whatever your income is, take a third of that and that should be your mortgage repayments, okay? And that really can work out from there how much your mortgage can be. You don't want to do any more than 30%. We're in a situation right now that's quite dangerous because you know, 12 rate rises people were a third of their income and that was the safe thing. But now we've had 12 of these rate rises. Some people are coming off and they're up to 50% of the income. Now if you're one of those people, give me a shout. We definitely look at helping you either with your investment property or talk to one of our specialists about planning.