Borrowing Power Calculator

Smart Property Investment's borrowing power calculator uses a matrix that comprises of various details that includes salary, incomes, annual expenses, loan and credit card expenses, and other similar expenses to determine the maximum amount available lenders could give you for a loan on your future property purchase. It also breaks down your monthly repayment giving you a better idea of how this may affect your current day-to-day living expenses.

Property investors often worry about how much they can borrow from lenders to finance their investments. Smart Property Investment's borrowing power calculator uses salary, incomes, annual expenses, loan and credit card expenses and other similar expenses to determine the maximum amount available for a loan on your future property purchase.

 

Aside from a total borrowing amount, our borrowing power calculator breaks down your monthly repayment giving you a better idea of how this may affect your current day-to-day living expenses.

 

Definitions:

Joint income

Joint income comes from a combined income stream and tax liability for legally married couples.

Dependents

Dependents are persons who relies on another person for financial support, usually family members or relatives.

Net salary

This is your take home pay after all statutory deductions, depreciation, interest, and taxes have been made.

Other net income

Total earnings or profit after subtracting costs of other deductions, the total of which is not based on salary and similar forms of income.

Maximum per cent of income available

This percentage is an approximation of the amount of income available to investors to use against the loan.

 

Annual expenses

A summation of all expenses made against the finances of an individual, including but not limited to rent, clothing, car loans, medical, and mortgage expenses.

Monthly car loan repayment

This is the amount paid to lenders against fulfilling any car loan agreement.

Average monthly credit card repayment

This is the amount paid to lenders against fulfilling a credit card loan agreement.

Other payments

Any and all other payments and expenses not listed in the calculations, but not included in your annual expenses calculations.

 

Interest rate

The amount of interest due per period, as a proportion of the amount loaned, deposited or borrowed.

Loan term

The number of years needed to repay the loan, as indicated in the loan agreement.

Interest rate buffer

An added percentage in addition to your interest rate as a coping mechanism if loan repayments rise.

 

Approximate amount of loan

An amount that estimates the total loan available to use by investors.

Approximate monthly repayments

An amount that estimates the value of monthly repayments to be made to use by investors to satisfy the loan.

DISCLAIMER:

The information provided by the borrowing power calculator is intended to provide examples based on stated assumptions and inputs entered and are meant as estimates. It is advised that you consult with your mortgage broker about your specific circumstances, as well as figuring out if there are any other loan features that could affect total payable values.

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Borrowing Power Calculator
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