Why is NAB borrowing power calculator....

Discussion in 'Loans & Mortgage Brokers' started by dsman, 11th Nov, 2019.

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  1. dsman

    dsman Active Member

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    Why is NAB borrowing power calculator using 5.88% as calculation while Westpac , CBA and ANZ uses around 4.8% (which is lower then the actual rate they would use to calculate serviceability ??

    Why the discrepancy? And currently it looks like NAB is tough as nail in regards to home loan amount.
     
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  2. Lindsay_W

    Lindsay_W Well-Known Member

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    You can change the rate manually on that calc, it's not a true reflection of your borrowing capacity anyway.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Are you looking at the online calculator on their website? Don't bother with any of these, they're not accurate, don't actually follow the lenders policies and even if they did, you probably wouldn't enter the information correctly.

    Online calculators such as these are there to generate an enquiry. They're a marketing tool.

    If you want an accurate comparison of borrowing power across various lenders, you need to see a broker.
     
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  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Are you looking at online calcs? They're junk, so pay them no attention :) NAB's actually not bad for servicing.
     
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  5. dsman

    dsman Active Member

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    Ok, But in the case of NAB they are losing potential clients? ( Assuming not everyone uses a broker).
     
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    As mentioned, you can amend the interest rate on that calculator to be whatever you want it to be, it's not fixed in place
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    If someone chooses one lender over another based on the online borrowing calcs then they're doing so based on false info.
    If you want to know what you can actually borrow with each lender based on real data and policy requirements then best bet would be to speak to a broker if you haven't got one already.
    Eg. you could waste time completing each lenders online borrowing power calcs, choose the lender that gives you the highest result only to find out that you don't fit their policy or can't borrow anywhere near that figure in reality.
     
  8. dsman

    dsman Active Member

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    Hi All, I'm clear now. I think my question was more like is NAB tougher in regards to loan serviceability compare to the other big 3 , since they intentionally default their calculator to be 5.88% so that it don't mislead potential borrowers.

    I know you can change the rate to be less. But then you will just be having unjust expectations on your borrowing capacity.
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You will be anyways, as they're not realistic :)

    NAB are one of the more generous 'generally' but it depends on how your income is made up.
     
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  10. Curious2019

    Curious2019 Active Member

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    Don’t read too much into the default rate on the online calculator. I don’t think it correlates to anything specific. Pretty silly from a marketing perspective though, they should probably lower the rate or bring it in line with the other banks default calculator rate to entice more people to make more online enquiries.