Can I Rely on a Borrowing Capacity Calculator?
In 2022, homebuyers can enter the mortgage application stage far more informed. Several tools and resources remain at their disposal including online calculators such as the borrowing capacity calculator.
Individuals who earn $40,000 can qualify for home loans under the right circumstances. Most people believe that a higher income earns them a larger mortgage. However, lenders look at additional factors to income. They also look at monthly expenses. Credit scores and other outstanding debts play a role too. Moreover, the number of dependents a homebuyer has determines borrowing capacity too.
The borrowing capacity calculator takes into account:
- Loan details
- Annual net income
- Monthly expenses
After inputting information into the fields, the calculator renders two pieces of information, monthly repayment and the amount the user can potentially borrow. Although the calculator renders helpful information, lenders still must go through the evaluation process. Lenders also take a look at three months of bank statements and payslips. They must spot trends in the applicant’s income and spending habits.
Mortgage House is a non-bank lender that seeks to put each applicant in a home loan that they can afford to repay over 30 years. No lender wants homeowners to fall into foreclosure in the Australian housing market. Our loan specialists have tools that allow them to efficiently evaluate applications and find competitive loan terms for most applicants.
Borrowing Capacity Calculator Conclusion
A borrowing capacity calculator takes several factors into account. The result from the calculator allows homebuyers to understand the amount that they can borrow. After you try the Mortgage House calculator, contact our specialists to explore your home loan options.