Borrowing Power Calculator
Buying your first home is an exciting time – but it can also be complicated – my job is to make it easy for you.
Instructions for using the calculator are below!
Getting Started
Before you begin, gather some basic financial information. This might include your:
- Income (both annual gross and net)
- Monthly expenses
- Any existing debts (like credit card balances, car loans, etc.)
- Deposit amount you’ve saved up
Using the Calculator
Input Your Income
Usually, you’ll start by entering your annual gross (before tax) income. If you have a co-borrower, such as a spouse, you can include their income as well.
Detail Your Expenses
Enter your regular monthly expenses. This might include utility bills, subscriptions, groceries, and other routine outgoings.
Include Debts
If you have other debts, add them next. This helps the calculator determine your debt-to-income ratio, which is essential for understanding your borrowing capacity.
Deposit Amount
Input the amount you have saved for a deposit. Remember, the larger the deposit, often the more you can potentially borrow.
Reviewing Your Results
Once you’ve entered all the details, the calculator will provide an estimate of the amount you may be able to borrow.
This is a rough estimate. Actual amounts can vary based on interest rates, specific lender criteria, and other factors.
The results might also show you an estimated monthly repayment, helping you assess if the potential loan is affordable for you.
Additional Tips
Feel free to adjust the numbers and scenarios. For instance, what if you waited another year and had a larger deposit? How might that affect your borrowing power? Try varying the interest rate to see how potential future changes might impact your borrowing capacity and repayments.
Get Professional Advice
While online calculators are great starting points, they can’t replace personalised advice.
Get in touch today to gain a full understanding of your borrowing power