The How Much Can I Borrow? Calculator gives an indication of how much you can afford to borrow and the property value you can afford to buy.
These amounts can be restricted by your disposable income or the size of the deposit you have saved.
The calculator makes a number of assumptions, including that:
the maximum loan to valuation ratio you will be approved for is 90 percent.
that the fixed costs associated with taking out and a loan, buying a property and moving in are $3,000. This includes expenses such as loan establishment fees, conveyancing costs, government fees such as title search, mortgage registration and other costs such as removalist charges, telephone connection costs and council rates.
the loan interest rate is increased by 2 percent when determining the maximum loan amount you can afford based on your income. Similarly, disposable monthly income is reduced by $300 to allow for unforseen expenses.
the borrower is required to pay the lender's mortgage insurance (LMI) as per the following: if the loan to valuation ratio (LVR) is greater than 85 percent and less than or equal to 90 percent LMI = 1 percent of the loan amount; if the LVR is between 80 to 85 percent inclusive LMI = 0.5 percent of the loan amount; if the LVR is less than 80 percent the borrower does not pay lender's mortgage insurance.
