i wanted to no, if you are paying ur interst only for 3 years, and then u decide to pay capital + interest, how much extra will u have to pay? suppose the loan was 100k and interest was 7%?
Hi All,
What is the actual equation used to calculate an individuals lending power (i.e. how much they can borrow). What I am after is how to calculate how much I can borrow taking into account my cash flow liabilities etc. I want to be able to work out before and after effects of various investments on my lending power. I am aware that there are many other issues relating to lending and I know that these will ultimately need to be taken into account. I just want to be able to calculate a ball park my self.Thanks
there are lots of mortgage calculators online, Markymark. There’ll be on on domain.com.au and on realestate.com.au All banks will have a calculator on their homepage, I think.
I find them a bit weird because they only take into account one’s income, not one’s equity, rent etc. I’d like to see one that has a (total) income vs liabilities calculator. If anyone knows of one of these, I’d be greatful to see it posted :o)
kay henry
Yeah I have seen these. I should have mentioned that I want to put it into a spread sheet so I dont need to go online all the time.
Regards
Well the problem is that all the lenders have their own serviceability calculators. Big job to include them all and keep it updated.
Brokers have their own software that is updated with all the different lenders requirements on it so they can enter the one set of figures then get a print of all the different lenders and what they will lend.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I thought if you buy +ve Cash Flow Property then there are unlimited servicebily in your hand. At the moment if I can find any +ve cash flow property then my relationship manager will be very happy to give me the loan.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]As Mortgage Hunter said, each bank has different criteria which is not always very trasparent. Brokers have access to banks excel spreadsheet calculators, but unfortunately we cannot give these out.
As a guide, Most banks take 100% of income, 80% of rental income into account, and then a living allowance which varies depending on how many dependents you have, your curretn repayments for exisiting loans and then the repayemnts on the loan you are applying for at an interest rate of about 1.5% above current rates. They may also make this calculation PI even if you are paying IO. And they will take 3% of your credit card limits as a monthly expense-whether you pay them over every month or not.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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