Borrowing power calculator

A borrowing power calculator is a helpful tool that gives you an idea of how much you might be able to borrow for a home loan. Factoring in your income and expenses provides an estimate of your borrowing capacity, helping you set realistic expectations for your property search.

This allows you to explore potential loan amounts and understand how different repayment types could affect your budget. While a borrowing power calculator offers valuable insights, it's important to remember that it's just one piece of the puzzle.

Metricon’s borrowing power calculator considers a range of factors to estimate how much you can borrow. It considers your income and expenses, including credit card limits, to assess your financial situation. You can adjust the loan term to see how different timeframes affect your borrowing capacity.

Whether you're considering fixed rate, variable rate, or even interest-only repayments, our calculator helps you understand the potential impact on your monthly repayments. By factoring in variable interest rates and the desired loan term, you can gain a clearer picture of what's possible when you rate home loans.

Understanding your borrowing power is a crucial step for home buyers. Here's why:

• Set Realistic Expectations: It allows first-home buyers and seasoned investors to focus on properties within their budget, whether it's a new home or an investment property.
• Plan Your Finances: Knowing your borrowing capacity helps you determine how much you can comfortably afford for mortgage repayments and other expenses.
• Make Informed Decisions: By considering factors like property value, whether you're an owner occupier, and the equity in your current home, you can make strategic choices about your next purchase.

Several key elements influence how much you can borrow. Lenders in Australia, operating under an Australian credit licence and adhering to the guidelines set by the Australian Securities and Investments Commission, assess various factors to determine your borrowing capacity. These include:

• Credit History: A strong credit history demonstrates responsible financial behaviour, increasing your borrowing potential.
• Financial Situation: Your income, living expenses, dependents, and existing financial commitments all contribute to your overall financial picture.
• Lending Criteria: Each lender has specific requirements and assesses your application based on their own lending criteria.
• Loan to Value Ratio (LVR): The LVR, which compares the loan amount to the property's value, plays a significant role in determining your borrowing power.

Want to boost your borrowing capacity and access more affordable home loan options? Taking steps to improve your financial profile can significantly increase your borrowing power and help you secure better loan terms for your dream Metricon home.

Here's how you can take control:

• Paying off personal loans, car loans, and credit card balances can free up more of your income for mortgage repayments.
• Explore opportunities to increase your earnings, such as a second job or rental income from an investment property.
• A healthy credit history demonstrates financial responsibility to lenders.
• If you have an existing home loan, refinancing could help you secure a lower interest rate and reduce your monthly repayments.
• Factor in lenders’ mortgage insurance (LMI) and how it may affect your borrowing capacity, especially for higher loan-to-value ratios (LVRs).
• Familiarise yourself with target market determinations to understand how lenders assess borrowers and tailor your finances accordingly.

Our borrowing power calculator empowers you to explore various loan options and loan types, giving you a clearer understanding of the loan product that best suits your needs. It helps you narrow down your choices and focus on Metricon homes that align with your budget and lifestyle.

For instance, if the calculator indicates you can comfortably manage repayments on a loan of $750,000, you might consider the stunning Kirra 24 design in South-West Brisbane, which has a fixed-price package of $730,054. If your borrowing power is closer to $650,000, the stylish Mantra 22 house and land package in the Hervey Bay region, priced at $645,378, could be the perfect fit.

Remember, understanding the full terms of any offer of credit and planning for regular repayment schedules are essential steps in your homeownership journey.

Ready to move closer to owning your dream home? Check out our range of helpful calculators designed to simplify your planning. With tools like our home loan repayment calculator and stamp duty calculator, you can get a clear picture of what your finances will look like. See how much you'll need to save with our home loan deposit calculator.

We work alongside finance partners who can provide a complimentary, no-obligation financial assessment to help you navigate the process. Book a consultation with our lending specialists to discuss your individual circumstances and help you understand the different comparison rates available.

At Metricon, we're here to make sure you have all the information you need to make the best choices for your future.