Mortgage Borrowing Calculator

What is a mortgage borrowing calculator?

A mortgage borrowing calculator can help get you closer to answering the question ‘how much can I borrow for a mortgage?’ Using a borrowing capacity calculator such as Mortgage House’s is just one of the steps everyone should take if they want to narrow down their real estate investment options. They are designed to simply be a guide but are a good tool to give an indication of how to work out how much will mortgage lenders lend you and your family. Investigate your borrowing power and mortgage potential with any of our home loan calculator options:

 

  • Borrowing calculator. A loan calculator such as this can also be known as a ‘how much can I borrow for a mortgage?’ calculator, as it will give you an indication of what a bank or lender may lend you when you apply for a loan. Using a borrowing capacity calculator is not part of the pre-approval process, but can help you narrow down, or expand, your property search.
  • Best rate mortgage calculator. A home loan calculator like a Best Rate Mortgage Calculator can’t help you answer the ‘how much can I borrow for a house?’ question, but it can help you find a suitable home loan. This resource helps you search Mortgage House’s home loans with interest rates in mind, once you have chosen the type of mortgage you are looking to apply for.
  • Switching mortgage calculator. Getting an answer to how much will mortgage lenders lend can be tricky when you are switching your mortgage or looking to refinance your existing loan to invest in another property or even buy something else. Our Switching Mortgage Calculator can help you identify whether or not you may save money by switching, and how much you may have to pay in fees and charges if you do.
  • Mortgage repayment calculator. A mortgage repayment calculator can give you an idea of how much your repayments may be, and how much interest you may pay, over the life of the loan.
  • Budget planner mortgage calculator. When you ask ‘how much could I get a mortgage loan for?’, it’s important to first know how much you may be able to afford to borrow. When you apply for a home loan, banks and lenders will ask you for a lot of detailed income and expenditure information. Our budgeting calculator is a good place to begin working out how much you may be able to afford to either save for a deposit or make in repayments. Simply enter as many details as you can, and our budget calculator will bring everything together in an easy-to-understand format.
  • Stamp duty calculator. How much you pay in stamp duty when you buy a property can vary depending on which state or territory you live in. This Mortgage House resource can make understanding stamp duty, and how much you will pay, simple.

How does the mortgage borrowing calculator work?

Like all home loan calculator options, a mortgage borrowing calculator provides you with clear information about your potential mortgage, helping you answer questions such as ‘how much can I borrow for a house?’ The home loan borrowing calculator is well designed and easy to use, offering a tailored Mortgage House service. It can be a lot more comfortable sitting on your sofa using our mortgage borrowing calculator than sitting in an office asking a big bank or lender how much do I qualify for a home loan? When you use our borrowing home loan calculator, like all of Mortgage House’s resources, you are getting the benefits of all our experience and knowledge.

Simply, we strive to provide loan, product and service outcomes that are tailored to your exact needs. Our borrowing capacity calculator is one of the many services our customers tell us they want. We’d rather do it that way than give you services only we think you need. We actively listen to our customers and work hard to identify suitable loan and finance products, as well as provide ongoing support over the life of the loan.

With the Mortgage House home loan borrowing calculator, it is easy for you to personalise the terms, interest rates and conditions and get a clear indication of your overall financial commitment. You can compare dozens of loan types and products offered by Mortgage House, using borrowing capacity calculator inputs that include:

  • Interest rate
  • Loan period
  • Income (you and your partner)
  • Personal expenses
  • Other expenses
  • Credit Card/Loan repayments

A mortgage borrowing calculator is a powerful tool that places control back in the hands of the borrower, allowing follow-up with a Mortgage House Lending Specialist to be productive and progressive.

Try our borrowing calculator

Loan Details

The interest rate for the loan.
% p.a.
What is the length of time to repay the loan?
years
Will the loan be for yourself or joint with another applicant?

Yes

No

Any person who depends on you for financial support e.g. your children?

Annual Net Income

Your net income per year i.e. after tax
$
Your partner's net income per year i.e. after tax
$
Any other income you may receive each year e.g. rent from a property, interest on savings or dividends from shares
$

Monthly Expenses

Personal monthly expenses e.g. rent, bills, shopping, fuel etc.
$
Any repayments you have to make each month to cover your credit cards or other loans
$
Any other monthly expenses
$

Your Monthly Repayment

per month

You Can Borrow Up To

Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable.

WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.

Is the mortgage borrowing calculator accurate?

The results you get when you use our borrowing capacity calculator to answer the question: ‘how much can I borrow for a house?’ can be extremely useful. When you combine them with the information you receive from our mortgage repayment calculator and the other calculators on our website, you will be armed with almost everything you need to apply for a Mortgage House loan.

All our calculators are only as accurate as the information you put in them, which is why it is important to have as much data at your fingertips as you can. When you apply for a home loan, you will be asked to provide evidence of income, so work with your employer or tax accountant to ensure that information is as up to date as it can be. It is also important when you are finding out how much will mortgage lenders lend that you realise everyone’s circumstances are different.

Make sure your income and your partner’s income are as accurate as they can be, and use our budgeting calculator to help you both identify your expenses and other debts or loans. There may be some external variables that a home loan calculator can’t capture, which is why it is important to realise a borrowing capacity calculator is a guide only. It is designed to give you an indication of what a bank or lender may lend you, and not a certain answer to ‘how much can I borrow for a new house?’ It is a great asset in narrowing down, or even expanding, your property search.

Armed with the information from your borrowing calculator, you can give yourself a price range of homes you may be able to buy.

Approaching a bank or lender can be intimidating, but the information Mortgage House’s borrowing capacity calculator gives you can ensure you are not out of your depth when you apply for a home loan. In fact, Mortgage House’s range of calculators can give you more confidence when speaking with Lending Specialists.

If you ask the question ‘how much can I borrow for a mortgage?’ and the answer isn’t what you were looking for, then that doesn’t mean your property dreams are over. Speak with our Lending Specialists and you may be surprised what other options you have available. A Family Pledge or Low Doc home loan may be a better option for you and your family, as may some of our Low Doc home loans.

How much can I borrow?

While a Mortgage House borrowing capacity calculator can guide you in the answer to the question of ‘how much can I borrow for a house?’, there can be other factors that may influence whether or not you are approved for that amount. One of those factors is your credit score. Income and credit score are likely to be the first two things banks look for when you ask how much will mortgage lenders lend you and your family.

 

  • What is a credit score? A credit score is a summary of the information that exists on your credit file. A credit file will include records of all the credit you have ever applied for, including home loans, personal loans, credit cards and even mobile phone packages. If you have missed repayments or defaulted on any of them, that will also be recorded.
  • What does a credit score mean? Your credit score can be what determines whether or not you are approved for a home loan. If you have a low credit score, then it is suggested you are at higher risk of defaults or missing repayments.
  • What do different credit scores mean? The higher the score, the better the credit rating you have. A higher credit rating supports your ability to meet your repayments when they are due. A lower credit score means you have a bad credit rating and suggests you may be at a higher risk of missing repayments and defaulting on your home loan over time. You may not be approved for the loan or may only be approved for a lesser amount.
  • Where can I see my credit score? Your credit score is held by a credit bureau. They will have a record of all your credit movements, even if you have been approved for a loan. If you haven’t applied for credit in Australia you won’t have a credit file. It won’t cost you anything to obtain your credit file, and you can request it once a year, or within 90 days of applying for credit. There are a range of credit bureaus in Australia. Find out more here.
  • How can I improve my credit score? There are a few strategies that may help you improve your credit score and increase your chances of being approved for low or no deposit home loans.
  1. Work on paying all your bills on time and in full.
  2. Try to settle any outstanding balances you have.
  3. Try to not overdraw your credit cards.
  4. Limit how often you apply for credit cards or loans.

Importantly, all companies have different scoring systems, and your final score may be based on more than just your credit file.

Answering the question ‘how much can I borrow for a mortgage?’, and therefore how much can you afford in repayments, can be difficult. That’s where Mortgage House’s budgeting calculator can help. Simply enter, as best you can, your income and expenses information into our budgeting calculator, and it will give you an easy-to-understand result, letting you know how much you might be able to pay off a mortgage each week, fortnight or month.

Calculator

What is the price of the property that you want to buy?
$
How much do you want to borrow?
$
What type of loan do you require?

Full Doc: Home loan suitable for people who are able to provide full evidence of their income when applying for a loan.

Low Doc: Home loan suitable for the self employed or people who are unable to provide full financial documents when applying for a loan.

Full Documentation

Low Documentation

Do you want a fixed or variable rate loan?

Fixed

Variable

Mortgage Deal Interest Rate Annual Fee Comparison Rate Repayments
Monthly Fortnightly Weekly

Important Disclaimer: This information is intended as a guide only. The calculation of fortnightly and weekly instalments varies with the specific loan product. Higher loan repayments will be required on principal and interest loans where the instalment calculation is based on half the monthly payment for a fortnightly payment or a quarter of the monthly payment for a weekly payment. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan.

Does the mortgage borrowing calculator include interest rates?

A borrowing power calculator will take into account interest rates, which is why it is important to have an idea of the kind of home loan you are interested in when you ask yourself ‘how much will mortgage lenders lend?’ Working out the type of home loan can give you an indication of what interest rate percentage to enter into Mortgage House’s borrowing capacity calculator.  There are two different types of interest rate home loans. They are:

 

  • Fixed-rate loan. A fixed rate loan means your interest rate will be fixed for an agreed period, usually between 1 and 5 years. Fixed rate home loans give you the security of knowing exactly what your repayments will be, making it easier to budget each week, fortnight or month.
  • Variable rate loan. A variable interest rate on a home loan is one that can increase or decrease over the life of the loan. The interest rate amount can be influenced by a range of internal and external factors, such as the cost to the lender of providing the home loan to you, or the national or international economy.

Another type of interest rate you will come across when you are searching for a suitable mortgage is a Comparison Rate. Comparison rates are always advertised alongside the headline interest rates of each loan offered in Australia. This rate is designed to give you an indication of how much the loan will cost you over its life, once all the fees and charges are taken into account. It is a tool to make it easier to compare home loans, without searching for the intricate details of each one.

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