08 Sep Benefits of Using a Home Loan Calculator
When you are still in the initial stages of shopping for a home loan, you are unsure of which lender to go with and you do not have the luxury of moving from one lender to the other to collect information on their loan products, using a home loan calculator is the best option to help you understand what your home loan options are.
As you ready yourself and do your financial housekeeping, here are some of the home loan calculators that can help you make an informed decision.
Home Loan Borrowing Power Calculator
The advantage of using this calculator is that it gives you an estimate of the maximum amount you are able to borrow. To give you more accurate estimations, the borrowing power calculator takes into account the current interest rates, your monthly income and expenditures. Once you have the figures, you should be able to know in which region you can shop for your dream home.
Home Loan Repayment Calculator
Once you’ve figured out how much you can borrow, the next step is to find out how much you’ll need to put aside from your monthly budget to cater for the loan. This is where the repayment calculator comes in handy. All you need is the amount of home loan you intend to borrow, the interest rate and the loan term. Once you’ve entered all this information into the calculator – try and be as accurate as possible – you should be able to know how much you will pay per month plus the interest. The benefit of going through this process is to enable you figure out if the mortgage you intend to borrow will strain your budget or if it will fit in well.
As you try to clean up your credit score and prepare your documents, don’t forget to make good use of our free home loan calculator tool. If you need someone to walk you through the process, give us a call on 1300 017653.
For more information about home loans or home loan interest rates in Australia, you can visit our home page.