Is every mortgage calculator the same?

A home loan calculator isn’t just about discovering your potential repayments. In fact, there are a host of mortgage calculators out there that can be helpful to homeowners and investors at different stages of the homeownership journey.

Let’s explore home loan calculators that can help you quickly find your best home loan option and help you manage your budget before and during your mortgage term.

The best mortgage calculators available

Before you start your home loan journey or even start checking out real estate options, you’ll want to figure out how much money you might be eligible to borrow. Without knowing your borrowing capacity, it can be difficult to determine your real estate spending limit.

RateCity’s Borrowing Capacity Calculator reflects the types of analysis a lender may perform when seeking pre-approval or full approval for a mortgage loan. This includes information about your income, expenses and any dependents.

You will then see an estimated range that a lender can potentially allow you to borrow, from lowest to highest, as each lender’s eligibility criteria may differ.

It’s the calculator that usually comes to mind when you think of a mortgage calculator. A repayment calculator should help you figure out what different home loan repayment options might look like, depending on the loan amount and interest rate.

You will be shown your estimated mortgage repayments and you can also see what the different repayment frequencies would look like. Not only could this help you with budgeting, but it could also help narrow down your short list of options by eliminating more expensive loans.

Saving a down payment is arguably the biggest initial cost of buying a home, but paying stamp duty can be a close second. Stamp duty differs by state and territory and can run into the tens of thousands of dollars, depending on the value of the property.

Use RateCity’s calculator indicating if you are a homeowner or an investor, if you are a first-time home buyer, the state or territory where the property is based, if it is a home new or existing and the value of the property. The calculator will then determine the estimated cost of the applicable stamp duty.

Keep in mind that certain stamp duty exemptions and concessions may be available in your state or territory if you are a first-time home buyer. Check your state’s tax authority website for more detailed information.

A home loan isn’t just about getting approved, you’ll also want to make sure you can safely afford your repayments if – and when – interest rate hikes occur. An option homeowners can use to determine how risky the level of debt they’ve taken on relative to their income is with RateCity’s Mortgage Stress Calculator.

Mortgage stress is colloquially described as when a household’s mortgage payments exceed 30% of their pre-tax income.

  • Stress-free zone = Spending less than 20% of your income to pay off a home loan.
  • Stress danger zone = Spend between 20 and 30% of your income to pay off a mortgage. One or more increases in cash rates can put you in a financially vulnerable position.
  • Mortgage Stress Zone = Spending more than 30% of your income to pay off a home loan. You are already in “mortgage stress”.

The Mortgage Stress Calculator page also offers insight and general advice on how borrowers can help reduce the impact of mortgage stress or reduce their risk of experiencing it.

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