How Much Can I Borrow
This is the first thing you need to know when looking at getting a loan, mortgage or any sort of finance.
Why look at homes that are way out of your mortgage budget? What if you could be looking at much nicer homes?
Fill in the details below and have a professional opinion of how much you can look at borrowing for any type of loan, mortgage or finance!
How does the calculation work?
A mortgage calculator works by using the following formula:
M = P [i(1+i)^n/ 1-(1+i)^n]
M = Your monthly repayment. This is the figure you’re trying to find.
P =The principal or the amount you borrowed.
i = Your effective monthly interest rate. You can find your monthly interest rate by dividing your annual interest rate by 12.
n = The total number of repayments on the loan.
Mortgage calculators help you to figure out what your borrowing power is. The definition of borrowing power is, more or less, the ability to borrow funds. For example, if someone has large assets and minimal debt, they have a greater borrowing power than someone with little savings and a lot of debt.
With so many borrowing capacity calculators out there from the likes of ANZ, Westpac, Commonwealth, NAB, St George and the rest, it’s tricky to get an accurate borrowing amount for your specific situation. This makes it a good choice to go to a broker and get a personalised borrowing quote. This is why the details above are required, to get you the most accurate quote.