Accurate Loan/Borrowings Calculator

Hi all - could someone point me to an effective and accurate loan borrowing calculator tool which estimates with reasonable accuracy how much an individual could borrow based on a number of variables?

This would take into account the individual's personal, business, and rental income, all expenses from investment properties, personal expenses, current loan repayments, equity available in existing properties, cash and other assets with value, and more.

I've used the standard ones available online from the banks such as CBA, ANZ and so on, but they not take everything into account.

I'm in the process of getting a broker to organise pre-approval on a few more investment properties and I want to see how closely the tool can estimate what I can borrow versus what I am actually given.

Cheers

 

Broker head groups have litterlly spent millions on software that should address this. It doesn't, not even close. Completely unreliable.

The online calculators from the banks are even worse, they don't even ask the right questions to reflect the banks actual lending policies. These calculators are a marketing tool to get you to contact the bank.

As a broker, I manually enter the figures into the individual calculators the banks give us. In most cases it's an Excel spreadsheet, but some are online (on the banks broker website, not available to the public). These are frequently updated.

There's a new mob saying they've got software to address the problem, I have no idea how accurate it is.
https://quickli.com.au/

 

These are not publicly available. Ask your broker for a copy of one so you can check their figures.

 

Thanks mate - I'm subscribing to their trial now, so I'll give it a crack.

 

I'd be interested in your thoughts, but don't assume it's accurate. With an IT degree and mortgage broking I understand the challenge of developing a generic calculator that covers multiple lenders better than most. The challenge is somewhat technical, but most of the problem is lenders do not make some of the metrics available to anyone. Even if you can deduce them, some metrics such as living expenses are updated quarterly. It makes maintaing an accurate system a nightmare.

 

I put all correct numbers based on my true knowledge into CBA and it showed my borrowing $884k (with one option, there were 4 to choose from wirh wealth package without etc.)

I put same numbers in ANZ and result was much lower!

 

A Mortgage Broker. I honestly don’t understand why people would bother multiple banks online calculators that aren’t even accurate when you can use a professional (mortgage broker) that doesn’t cost you a cent.

still blows my mind that the broker share isn’t more like 80-90%. The time will come

 

I had a go with this - it provided significantly different types of borrowing capacity depending on lender. Some lenders simply disregard specific piece of data I inputted, while other consider them all, and the 'buffer' used for certain banks for calculations is ultra-conservative. The 2nd tier lenders allow a huge amount to be borrowed while the 1st tiers offer less range.

The key thing would be to figure out the calculations used by different banks, which also constantly change.

 

If only there was someone who did this for a living.

There's a few things in your comments that tell me your results probably aren't entirely accurate either.

 

When one is at the planni g stage and not sure if they will procees with the purchase or not and do not want to waste time and money of the broker as at the end of the day, it is their bread and butter.

 

Yeah you're right. The constantly changing variables would make it tricky.

 

Yep, variations are considerable.

 

Yes of course, a broker has access to everything required including the tools and bank relationships - but if there was a tool available that provides a quick 'indicative' range of what type of borrowing capacity is possible priorhand (before submitting all of your paperwork, etc to the broker), by entering key data to provide a ballpark, that would be helpful.

80-90% share of what amount do you mean?

 

Yes exactly - these tools are useful when you are just wanting to get an idea of your borrowing capacity before committing to a purchase.

 

Did you manage to make it work?

...

May I also ask everone, how many users get ore approval (actual letter) before putting in the offer? Or you are comfertable just with the number/estimate given to you by your broker

 

Market share. Brokers Vs branch network

 

I work in software and I can see this. Millions wouldn't be an over exaggeration. It's a tough problem to solve with a complex web of rules, scope for assessor discretion, constant change, and rules that have dependencies on other institutions / holdings as well. It's not a project I would want to take on!

 

The problem wasn't all that hard to solve until about 2015. Lenders had a wide range of policies that had to be accounted for, but they were clear.

The living expense changes messed everything up. Instead of a universal and simple set of numbers, it became a complex table that is unique to every lender. Even then they don't disclose how to calculate the variables to enter into the table to get a result. Then they change it every quarter.

Given a bit of time I recon I could write a fairly good universal calculator that adjusts for a broad range of lenders, except for the living expenses. By the time you had any given lender figured out, they'd move the goal posts.

 

For many of the investors I see, indicitive isn't good enough. High prices and conservative borrowing have left investors scrambling for every penny they can get. Right now about 60% of the applications I've got in the pipeline are deals that I have to fight very hard for.

The other problem with giving people a calculator is they often don't put the right data into it.