Blog How to use a mortgage calculator in Australia

How to use a mortgage calculator in Australia

25 August 2017
How to use a mortgage calculator in Australia

Whether you’re buying a home or an investment property in Australia, a mortgage will help you get the property you want. With many lenders to choose from, finding the best deal on a mortgage can be a challenge.   

Other than finding the best deal, you need to establish how much you can borrow and how much you can afford. One way to work this out is by using a mortgage calculator in Australia.

A mortgage calculator is an automated tool that can help ease any concerns about your finances when shopping for a home. Using an Australian mortgage calculator can help you determine whether a given mortgage amount is suitable for you, so you’ll know if you’re capable of covering the mortgage repayments.

A mortgage calculator also lets you know if the home loan type is suitable to your requirements and financial situation. So you can better manage your mortgage in the years ahead.

Using a mortgage calculator in Australia is pretty simple. You just need to indicate the amount of your loan, interest rate, how long your loan term is, your repayment frequency (weekly, fortnightly, or monthly), and the type of repayment (principal & interest, or interest-only).

The mortgage calculator will only give you a rough estimate of your repayments based on the figures you input. If you think you can’t cover the sum you initially indicated, you can always change the loan term, repayment frequency, and repayment type so you can see what amount will suit you best.

Other mortgage calculators in Australia even have the capacity to compare home loans by juxtaposing the figures. This is a helpful feature of a mortgage calculator so you can see the difference between the two mortgages, and see which home loan is more appropriate for you.

An extra repayment mortgage calculator is another tool that can help you calculate the difference when you make additional repayments towards your home loan. This calculator enables you to see how much time and interest you save when you make extra repayments.

Using an extra repayment calculator is similar to the regular mortgage calculator. The only difference is that an extra monthly repayment is added to the calculator.

Keep in mind that using any online mortgage calculator in Australia can only provide you a rough estimate of your repayments. A mortgage calculator is just a guide and reference to estimate how much you would likely need to pay towards your home loan. It’s still best to seek advice from professionals to understand if a certain mortgage is appropriate for your financial situation.