Home Loan Calculators

Use our Home Loan Calculators below to find out how much you can borrow, compare home loans and find out how much you can save by making extra repayments.

Do the maths to save yourself thousands!

Did you know that most Australians don’t do any kind of budget or research before buying a home? Considering the cost of mortgage repayments over the term of the loan, and that a large portion of your income will go to your repayments, it is crucial for you to spend the time and work out how much you can afford.

If you calculate your own borrowing capacity then you are going to get a more accurate figure than that given to you by the banks. Only you can really work out how much you can afford. In particular, the living expenses used in the banks serviceability calculators are based on the Henderson Poverty Index. In other words they assume you have a very low standard of living. This may be fine for some people, however for most people living in an expensive capital city such as Sydney or Melbourne this is an unrealistic figure.

Should you borrow to your limit?

No! Unlike borrowers in other countries, Australians have a habit of borrowing the absolute maximum that their bank will allow. Most banks put in a buffer in their calculations, so that if interest rates rise they know that you can still afford the loan. However life has a habit of throwing challenges our way and we need to be prepared to handle them.

Did you know that rising interest rates isn’t the major cause of people defaulting on their home loan? It is the unexpected problems that can affect any of us that are behind most people losing their homes. The problems can range from losing a job, divorce, illness to a major expense. The best way to avoid getting into this hardship is to make sure that you live well within your means, put as much money as possible aside and don’t borrow the maximum that the bank will lend you.

So use these calculators to find out how much you can afford, and then consider borrowing $25,000 to $50,000 less. You’ll find life much more enjoyable, have far less stress and if you have a surplus of funds each month after your home loan repayments have been made.

Learn more about home loans

Before you take the leap into home ownership you should take the time to read all of the information you can about the home buying process. Speak to your friends who have purchased homes, find a good conveyancer and find a suitable mortgage broker. In addition to this you might like to visit the Home Loan Experts website to find more home loan calculators..