Home affordability best in four years

Homes are the most affordable they have been in four years but they are still unaffordable for many and credit rationing by banks isn't helping.

This is the conclusion of the December Home Loan Affordability report from financial information website www.interest.co.nz, released as banks slash mortgage rates further.

The proportion of an after-tax median income needed to service the mortgage for the median house price fell to 59.6 per cent in December from 63.8 per cent in November.

This was the first improvement to below 60 per cent for a typical home buyer since January 2005 and well below the record worst level of 82.9 per cent in November 2007.

To read the full NZ Herald story click here

Posted: 22 Jan 2009

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