Terms and conditions

Terms and conditions, fees and charges, and normal lending criteria applies.

The purpose of this report is to assist you in calculating your estimated borrowing power associated with a new home loan, and estimated home loan repayments based upon the information you put into the form. If you change any of the information, including the interest rate, you will obtain a different result. It does not constitute an offer of credit. The actual amount you can borrow, and the applicable loan repayments, can only be determined once you submit a full application with a lender or bank, who will assess your application with their credit criteria applicable at that time.

Fees and charges:

Any fees, charges or duties you could incur in relation to your loan and/or property, are not included.
Expenses: We apply different methods, depending on the bank or lender you have been matched against. Many Australian banks use actual living costs when assessing your mortgage application however for the purpose of this report the Household Expenditure Measure (HEM) has been used. The result should be used as a general guide only, as your living expenses can vary significantly depending on how you choose to spend your money.

Interest rate:

For the purposes of our calculation, we assume a variable interest rate. A static rate has been applied for the full 30-year loan, as we can’t predict what rates will do in the future.
The interest is charged to the loan account at the same frequency and on the same day as the repayments are made (this may not be the case for your loan).
Repayments are principal and interest repayments.

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
Interest rate buffers: We include an interest rate buffer in our calculations. This allows us to factor in, to a degree, the effect of interest rate increases when working out how much you may be able to afford. The bank or lender may apply higher interest rate buffers.
Your annual interest charge is divided equally over 12 monthly payments (in reality, interest is calculated daily and charged monthly which can lead to your interest charge varying between months).

Before acting on the results of this report you should seek professional advice.