Part 6/8:
Assess personal financial capacity: Ensure that monthly mortgage payments do not exceed 30-35% of household income.
Build a robust emergency fund: Ideally, save enough to cover 6 to 12 months of living expenses, including loan payments, in case of unforeseen financial setbacks.
In Hafsa and Jodi’s case, alternative solutions such as requesting more flexible repayment terms from their family or restructuring their bank loan could have mitigated their financial burden.