Based on your present income you can now determine how much amount can be borrowed by the banks. To discover this, you need to put in the figures in the borrowing power calculator. This calculator will present you the borrowing power after doing the math.
The expenses would be based on the type of application - Single or Joint and the number of dependents like your children, parents or other family members who need financial support. The borrowing calculator would also give you the estimate of loan repayments on a monthly basis. This will give you the confidence to buy a home as it also performs a partial duty of home loan borrowing calculator.
There are few factors on which the borrowing power varies. Keep a note of them:
- Your Circumstances
- Interest Rates
- Preferred Lenders Lending Policy
How Do I Calculate My Borrowing Capacity?
You can calculate the ‘how much can I borrow’ amount through this calculator by entering the exact figures it asks for. You will have to enter the details such as
- Loan Amount - Manually amount needs to be entered
- Interest Rate - Either it will be fixed or must be entered manually depending on the lender
- Loan Term - Manually amount needs to be entered
- Repayment Frequency - Needs to be selected from the drop-down menu
- Loan Fee - Needs to selected from the drop-down menu
Estimated results are then calculated based on the entered figures.
Why should you use our Borrowing Capacity Calculator?
Generally, many lenders consider the negative gearing benefits while they calculate the borrowing power of an individual. This would reduce your tax expense. Whereas the calculator is developed in such a way that it will facilitate the borrower in estimating loan amount from various banks.