Using an Internet Home Loan Calculator Australia;

A Home loan calculator Australia, can be of great assistance in helping you with your research into attaining a home loan.

Particularly home loan calculators like a mortgage repayment calculator that work out a simple monthly payment or stamp duty calculators, interest only loan calculators and loan to value ratio calculators.

Here are our “Home loan Calculator Australia” calculators;

However a more complicated home loan calculator like a how much can I borrow calculator which checks to see if you can qualify for a home loan pre approval, can be very dangerous to rely upon.

I strongly recommend that you be wary of the results that you get from any home loan calculator Australia, that is available online.

Particularly in regards to pre approvals, or other home loan calculators that you can use to see how likely it is that you are to be successful with your loan application.

The trouble is that many of these calculators only ask for very basic information. They do not go into the type of detailed information that a bank requires when they are assessing if they are happy to lend you money or not.

The facts remain that the qualification criteria is extensive and is also constantly changing. There is no way that an online home loan calculator Australia is capable of keeping up with the changes, and nor can it factor in the whim’s of the banks who one day are happily lending money to just about anyone and the next have virtually closed their books.

Now there is nothing wrong with using these online home loan calculators, they certainly give you an indication of how likely you are to attain a loan approval.

I am simply pointing out that it is a very dangerous thing to make the assumption that because you filled in some information in an online home loan calculator and it told you you were good for the loan, that the same bank will actually approve your application.

I have seen many people go off house hunting or even attending auctions, all set to buy their next or even first home based on the results of a home loan calculator for Australia, only to find out that the bank has a problem with;

• The number of credit cards they have, or
• Their current home loan has 2 late payment 5 months ago, or
• There was a couple of late payments on their credit cards, or
• Their credit reference shows a default from a telephone company for $50.00 from 4 years ago, or
• They do not actually have enough funds because they forgot about stamp duty, or
• Or heaven forbid, some one has stolen their identity….
• and the list could go on.

You might think some of these things to be quite irrelevant, but I have seen many loans declined for just these reasons.

So what is the best way to be sure that your loan application will be approved by the bank that you want to deal with.

The trouble is that if you just go off to that bank and ask them for a loan, they will do a credit reference check on you. And as a part of that credit check, your credit file will be marked that you have made an application for $x on that date with that bank. Now if they decline your application, your file will also be marked that the application was declined.

So then when you go to the next bank, it is going to be very difficult to get an approval, because they are going to be suspicious about why the first bank did not approve your loan.

The simple solution is to take your inquiry to a Mortgage broker. Any good Broker will have access to all the home loan calculators that you can think of. And they should also have access to some pretty fancy home loan calculators that help them to find the cheapest and best loan for your situation.

And even better than that they will assess your loan prior to it being submitted to the bank of your choice. Natuarlly your mortgage broker wants to do the right thing by both you and the bank. If he does not look after you he does not get your business, and if he continually submits poor quality loans to the banks, then he will get a bad reputation, and with no loans approved, he has no income.

You can be sure that he will let you know if he feels your application is going to be declined. Further to this, he can make anonymous inquiries on your behalf that will not affect your credit file if there is a borderline issue.

So using a selection of home loan calculators for Australian conditions, is definitely something you should do as a part of your research, into how much you are likely to be able to borrow and what the monthly repayments will be etc.

But just be careful to take the results of such an online home loan calculator Australia, with a grain of salt and seek the advice of an independent expert like a mortgage broker.

And finally please get a formalised pre approval from your broker or bank before you start looking at buying a home, and remember that your pre approval should only be subject to attaining a valuation on the home that you decide to buy.