Property Now
How Banks Decide If You Can Get a Mortgage (Economist Explains)
How do banks decide if you can get a mortgage? And why do they sometimes say NO even when you think you can afford it?
In this video, I explain the 3 main tests banks use in New Zealand to assess your mortgage application:
📌 Deposit Test (LVR) – Do you have enough deposit saved?
📌 Debt-to-Income Test (DTI) – Are you already carrying too much debt?
📌 Affordability Test (UMI) – Can you afford your mortgage repayments at higher rates?
I’ll walk you through real examples so you can understand how much you can actually borrow—and what to do if you don’t pass the tests.
Ok, now for the legal bit:
The information and opinions on this channel are for your general information. It’s not financial advice. So the hosts aren’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong.
Make sure you do your own research or talk to a financial adviser before making any financial decisions. See our Disclosure information here.
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