What can I afford to borrow uses money you currently spend each week, such as the savings you've been putting away for a home loan, your rental payments and money you spend on uneccesary items like "avo on toast".
. The total of those amounts is used as the amount of money you can put towards a mortgage payment each week.
The borrowing amount is determined based on those monthly payments.
- Interest rates remain the same for the term of the loan.
- One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks.
- Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly.
- Repayments are made at the start of each period.
- Rounding is made at the end of the calculations and not at each payment period.
- It does not take into account up-front fees and monthly/annual account fees.
- You can email your results to yourself and if you request, a copy of your results and contact information is sent to the web site owner.
- You can print your results for future reference.
- You should consult a finance professional before you make decisions based on this calculator.