Times are challenging for first home buyers, particularly those in capital cities like Sydney or Melbourne. That’s why it’s essential they arm themselves with the best tools to give themselves a fighting chance and succeed in nabbing a home loan.
Whether you’re wondering how you’ll ever get a foot on the property market, you’ve saved up a home deposit or you want to make your first mortgage more affordable, there are several helpful home loan calculators that may make the first home buyer experience much easier.
Calculators for before you buy the property
If you’ve got a savings goal in mind like squirrelling away funds for a home deposit, this calculator can help you to figure out how to reach your goals within your chosen time frame. Simply enter your savings term, initial deposit amount, periodic payments and frequency, as well as your savings account rate, to determine how much you may be able to save in that period of time. If you’re coming up short of your deposit goal, this may be a good indication you need to adjust your budget or increase your income to boost your periodic payments.
Now you know your deposit savings goal and how much you need to save to reach it, you may need to assess your budget. If you’ve never made a budget or if your current one is a little outdated, a Budget Calculator may be a helpful asset.
You’ll enter your personal financial information, including your income, expenses broken down into categories such as household and personal, any liabilities as well as savings. The results will show you a breakdown of what each category may cost and any shortfalls or surpluses. Using this information you may be able to cut down on expenses or boost your income to put more money towards your deposit goals.
Calculators for when you’re applying for a mortgage
When it comes time to consider applying for a mortgage, or if you want to shop around for properties, you may be wondering what exactly your price range is. This is where the ‘How Much Can I Borrow?’ Calculator comes in. It calculates your maximum borrowing power based on your income, expenses and dependents against a hypothetical loan option. The results may provide a snapshot of how much a lender may be willing to loan you based on these factors. Once you know this, you may be able to apply for a mortgage or shop around for real estate with confidence.
Arguably the second biggest upfront cost of a mortgage outside of the deposit is stamp duty. The last thing a first home buyer wants is to lock in a mortgage, win a property at the auction and then discover they struggle to afford the stamp duty on this purchase. Depending on the property value, stamp duty can climb into the tens of thousands of dollars range. You may also qualify for duty concessions or exemptions, depending on the property value and your state or territory. Use a Stamp Duty Calculator to determine this potential cost.
If you’re weighing up the pros and cons of a range of home loan options, one of the best ways to determine which may be the best suit for your financial situation is to use a Mortgage Repayment Calculator. Mortgage Repayment Calculators may help you determine the estimated repayments on any given home loan interest rate. Fill in the loan amount, loan term and interest rate, and the calculator will show how much the loan may cost you on an ongoing basis.
Calculators for when you’re repaying your home loan
You’ve nabbed a home loan but want to work on paying it off a little faster. The Extra Repayments Calculator may show the borrower how much time and interest they may save by making more than the minimum repayment on their mortgage. If their loan offers the ability to make additional repayments, this feature may also help you to save money in the long run via paying less interest. Simply enter the loan amount and term, loan interest rate, extra repayment amount and frequency and how many years into the mortgage you’re beginning the extra repayments.
Finally, another helpful calculator for borrowers is the Mortgage Offset Calculator. If your home loan offers an offset account, this calculator may help you to determine how much time and interest you may save over the life of your loan by utilising this mortgage feature. Enter the loan amount and term, interest rate, lump sum repayment amount and its frequency, and how many years into the mortgage you’re beginning to use the offset account. The results will showcase your projected savings as well as your new estimated loan term thanks to your offset account.