MORTGAGE & HOME LOANMortgage Calculator
When searching and using online calculators do not be confused or amazed at the amount of money banks will lend you. Reality is that you need to talk to your broker or bank before accurately calculating your borrowing capacity. Calculators can help but should only be a guide. As a conservative rule you should borrow less than what the bank is willing to lend you.
Different banks have and use different policies when calculating your borrowing capacity. Basically they input all applicants income and current liabilities (Commitments) into the Mortgage Calculator to make sure all current debts and the new Home Loan can be serviced, they have defined living expenses depending on dependents and if you are a couple or single. Personal loans, credit cards and all type of commitments you might have are also factored into the mortgage calculator and will have an impact on your borrowing capacity. It is always a good idea to have a budget and stick to it, this makes it easier when working out how much you can borrow.