Borrowing Power Calculator
How Does Our Home Loan Borrowing Power Calculator Work?
Our home loan borrowing power calculator is crafted to provide you with a thorough insight into the amount you might be eligible to borrow for a home loan, considering your unique financial situation. Below is a step-by-step guide on how it functions:
1. Income Assessment
The calculator starts by asking about your income. If you’re in a relationship, you can choose to include your partner’s income for a combined assessment. This approach recognises the impact of a dual-income household on borrowing capacity.
2. Dependents
You’ll be asked about the number of dependents you have. Dependents can affect your borrowing power as they typically increase your living expenses.
3. Additional Income
If you have other sources of income, like investments, rental income, or freelance work, the calculator allows you to include these. This additional income can positively impact your borrowing capacity by showing you have more financial resources at your disposal.
4. Expenses and Loan Repayments
You’ll need to input your monthly expenses and any existing loan repayments. This includes everyday living expenses as well as commitments like car loans, credit card debts, or other personal loans. The calculator uses this information to assess how much income you have available for new loan repayments.
5. Borrowing Power Estimate
Based on the information provided, the calculator then computes an estimate of your borrowing power. This figure represents the amount you might be able to borrow, considering your income, expenses, and any other financial commitments.
6. Repayment Estimates
Alongside your borrowing power, the calculator also provides an estimate of what your repayments might be. This helps you understand not just how much you can borrow, but also whether the potential loan repayments would be manageable in your current financial situation.
For a more precise and tailored assessment, contact us today. We can take a more detailed look at your finances and guide you through the home loan process, considering your specific needs and circumstances.
*The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.
