Before you start looking for the right home loan, you should seriously consider planning ahead. This can start with finding out:
>> How much your repayments would be on a home loan;
> How much you might be able to borrow; and
>> Where your money is going.
Different Home Loan Calculators are useful at Different Stages
Here is a list of home loan calculators you can use to better manage your financial situation and cash flow:
Calculate your Borrowing Power – You can use this calculator to give you a good estimate of how much you may be able to borrow.
Loan Repayment Calculator – By choosing between monthly, fortnightly or weekly payment frequencies, you can calculate what your regular minimum repayments will be on your home loan.
Budget Planner Calculator -Using a Budget Planner calculator will enable you to plan where you want your money to go and more importantly you will be able to determine straight away:
- If you have any money left over (i.e. you have a Surplus), or
- If you are spending more than you are earning (i.e. you have a Deficit).
Extra Repayments Calculator – This easy-to-use calculator will enable you to quickly calculate:
- How long it will take for you to pay off your home loan if you made extra repayments;
- How much money you can save by making extra repayments; or
- How much you can save on your home loan by making large lump sum payments (i.e. from a windfall or inheritance, etc.)
Income Annualisation Calculator – There are often situations when you may need to perform income annualisation calculations on income that has been accruing for less than a full year. In situations like this, the Income Annualisation calculator will enable you to estimate your Year-to-Date (YTD) Total Income for the full year.
Loan to Value Ratio (LVR) Calculator – The LVR calculator allows you to calculate the percentage value of the loan amount to the value of your property. You can obtain the Loan to Value Ratio by simply typing in the following amounts:
- Your loan amount; and
- Your property value.
Other calculators available for you to use are:
Stamp Duty Calculator – This calculator will work out how much stamp duty you will need to pay.
Income Tax Calculator – This calculator will calculate your after-tax income (i.e. your net income). It will help you to know:
- How much of your net income you can allocate towards buying a property.
By having a look at these calculators, you will notice that most of them will only require you to type in a few numbers such as:
- How much your mortgage is;
- The nominated interest rate; and
- The nominated loan term (in years).
The “borrowing power” calculator and the “income tax” calculator will require you the following things:
- Your income; and
- Your current expenses (i.e. your monthly loan repayment expenses and your credit card limits).
So, now you know what types of calculators are available to you, you should consider taking some time out before you start looking for the right home loan.
By Alyssa Benson