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Borrowing capacity calculators - I'm funded, or I'm broke

Discussion in 'Property Finance' started by KayTea, 30th Dec, 2015.

  1. KayTea

    KayTea Well-Known Member

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    I know that they are only 'general in nature', but when I plug the same values into the loan calculators offered on the websites of a number of financial institutions, I end up being allowed to borrow anything from $0, up to $850,000, and everything in between. It's horrible :(

    I was hoping to get a rough idea of how much I may be able to borrow, before wasting a broker's time, but I'm thinking that there really is no other way to find out.

    Can anyone recommend a rather detailed calculator that is likely to give me a (close to) accurate estimate of my borrowing power, before determining whether or not I can hunt for a new PPoR, and avoid wasting a broker's valuable time?

    TIA,
    KayTea
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    @KayTea - the brokers on this site have nothing to do since the Sydney & Melbourne markets have started to head south ;)
     
  3. tobe

    tobe Well-Known Member

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    Online calculators won't help much I'm afraid. Get in touch with a broker. Your not wasting their time. Most good ones will have a detailed form for you to fill out. If you can go to the trouble of completing the form and perhaps shuffling over your payslips, they would be happy to give you a realistic borrowing capacity with a couple of different lenders.
     
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  4. KayTea

    KayTea Well-Known Member

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    Thanks @tobe. I'm more than happy to fill in the forms - I'd just hate to be the broker that spends an hour putting my profile together, then emails me back just to tell me that I can borrow $2.37 ;)
     
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  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    But on the other hand, if you can borrow $1.5M the broker will be rather happy they spent the hour :)
     
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  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Half of my day is spent running borrowing capacity calculations for clients based on various scenarios (e.g. if I purchase a property w/ "x" yield or get a job paying "y", etc).

    Its not wasting a broker's time - its part and parcel of what we do.
     
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  7. Redom

    Redom Mortgage Broker Business Member

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    Thats very considerate of you, but its very much what brokers do and specialise in.

    Often there's little quirks in the way to insert numbers into calculators that a broker may know of that a general consumer may not (e.g. for some there are manual calculations of your other debt repayments that aren't based on your actual repayment).

    Also, most savvy brokers know where to go once the first calculator shows up $2.37 - they may not all do that. For example, if you earn a significant portion of income via bonuses/commissions/etc, then traditional 'conservative' calculators may be the best fit as they use a higher percentage of this income than other 'relatively aggressive' lenders.

    Have a chat to a broker - just let them know you want to see where you stand and they'd be more than likely to want to help.

    Cheers,
    Redom
     
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  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Brisbane is still keeping me very busy ;)
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Medical Diagnosis by google .............

    You might cruise around a bit, but are unlikely to buy meds off the internet for something that you might have :)

    Serviceability is less of an art than it used to be, but the large variations you are getting are mainly due to the fact that most of these tools are simply there to get you in to the sales funnel.

    They usually arent a reliable guide unless your circumstances are very simple

    ta
    rolf
     
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  10. KayTea

    KayTea Well-Known Member

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    Thanks Rolf - I knew that they would be very general, but to get more than an $800K difference in borrowings (when the same details are entered) was a little surprising. I figured that maybe a $100K difference would be seen, but $800K?! :eek: