Is that at the minimum or how much extra do you pay?
What Percentage of Your Take Home Pay Is Your Mortgage Repayment?
Poll Options
- 18Less than 20
- 1220-30%
- 1631-40%
- 141-50%
- 650%+
Comments
Around 30% of our combined take home pay. We're paying a little extra too
About 20% at minimum but usually do about 45-55% to knock the balance down asap.
Kind of interested in this, if I were to get a mortgage now it would take like 43% of my take home pay. Now the question is, is that too much, interestingly my rent is taking 40% of my take home pay.
You might fail lending criteria.
It's not about your risk, it's about the banks risk.
Most of them will have algorithms to make sure you can afford to pay in multiple scenarios.
Now the question is, is that too much,
Of course it's too much - not by the standards of the Australian market, but by any introspection on how we got to wondering whether working 2 days a week for the bankers and taxman just to have a little patch of dirt and a roof over our head is too much.
Your scenario constitutes rental stress. Can you move further out or go smaller? 40% in rent is way too high. I feel for you, bro.
It depends what your take home pay is and your expenses. If you take home $100k p.a. then 50% is quite doable, but if your take home pay is $60k then 50% would be very stressful even for a frugal ozbargainer.
When I had a mortgage I paid about 50% of my take home pay, but that included optional extra payments.
% means jackshit
if you earn 50k pa , your repayment could be 60% of your take home pay if you got the loan on loose lending years ago
if you earn 120k pa, your repayment could be 10% of your take home pay, depending on loan size
Perhaps OP is interested to see how many people have overstepped themselves.
A poll would be best for this, ie: 20-30%, 30-40% etc..
0%
.
Me too. Paid off the house years ago. Fortunately we bought before house prices went completely insane. Back then pouring money into the loan made a lot of sense, so one wage just went into paying off the house.
it's a good feeling.
paid off the first when wife was made redundant, then we moved and paid off second after about 5 years in it.
we bought well within our means the first time around
.We did similar, bought first place in ‘87 then sold and bought our second in ‘94. Had that paid off by 2001. Even with the current low interest rates the mortgages are so big I would still be doing the “one wage pays the mortgage you live on the other”, track because you eat into the principle and the loan period drops dramatically. We just paid the standard amount for the first 6 months of the first home, saw how little that took off the mortgage and thought “bugger that for a game of soldiers” and started pouring money into the loan. A lean few years but totally worth it. Although, when your interest rate is 18% doing that was a no brainer.
Yep.
It takes a lot of discipline and a decent dual-income wage but the longest mortgage (of 4) I've had is 6 years.I worked so much overtime in the 80s and did so few extra-curricular activities that I missed the whole decade. It was pretty much work, sleep, renovate.
About 20%
Where is the 0% option?
Was wanting to know for those who have mortgages 😉
Indeed.
As phunkydude said, % doesn't mean too much without other conditions/constraints. I make median amount but bought a cheap place so it's <10% for me
Minimum would sit around 35% of our combined income but we manage putting around 55% in every month.
Too much * sigh *