Finding Your Sweet Spot: Borrow What You Can Actually Afford
Jul 21, 2025
Neal McIntosh
Borrow What You Can Actually Afford
You’re looking for your first home and want to know how much the bank will lend you on top of your $80,000 deposit. You schedule a meeting with your bank: “I want the maximum I can get, please.” The bank adviser says, “Look, your CrossFit, your dog daycare costs, and daily coffees are really cutting into how much we can lend you.” On one hand, you think, I want my own place. I want the best place possible. It’s the New Zealand way. (You’re not even sure why you think this, but it’s what your parents always told you.) On the other hand, you love CrossFit. You love working out with your community and you’ve made some of your best mates there. You love your dog. He’s your screensaver and comes everywhere with you. You love your daily coffee. It’s one ritual you genuinely enjoy every day, and it’s a good social environment for you too.
Cutting back without losing joy
I see some people cut back on their expenses so hard just to get the biggest loan possible. But is that really what you want in life? Remember, when you sign up for your mortgage, you’re going to have to repay it every month, for years. Will owning a bigger place really replace the joy your CrossFit, dog daycare, and daily coffees bring you? Will life be better with the bigger house that you’re stuck in because you have no spare money left? Or will a smaller place do? Maybe it doesn’t have all the fancy features, but you still get to enjoy the things that matter most. Either way can work. It just depends on what you really want in life. Take some time to think about what that means. And if you want to run the numbers properly, I’m here to help.
