Loan Affordability

Loan Affordability

Posted by Mike Keehan on 10 October 2011 | 0 Comments

Tags: NZ Home Loans, Interest Rates

Over the past few years, we have been calculating our clients’ loan servicing ability at a higher than normal interest rate. We have generally used a rate of between 8 to 8.5% for this purpose. Our thinking is that if our clients can comfortably service their borrowings at these higher rates, then they should not be too disadvantaged if and once rates start to rise again.

Meanwhile of course, we should all be using our surpluses as wisely as we can. Give us a call if you want to discuss interest rates.