affordabilitychecks
Affordability checks are financial assessments used by lenders, landlords, and service providers to determine whether an individual or household can reasonably afford a loan, rental, or other financial commitment. These checks help mitigate the risk of default by ensuring that borrowers or tenants have sufficient income relative to their proposed expenses.
In the context of mortgages, affordability checks evaluate a person’s ability to repay a loan based on
For rentals, landlords may perform affordability checks to ensure tenants can comfortably cover rent without straining
Affordability checks may involve reviewing bank statements, pay stubs, or tax returns to confirm income stability.
Critics argue that affordability checks can inadvertently exclude low-to-moderate-income individuals if criteria are too rigid. Proponents,