If you are looking to get a mortgage, the iSelect home loan calculator could be a very useful tool for you. If you use it correctly, it should give you rough guidance on how much you will need to pay towards your loan each month. It will also allow you to tinker with data to see which sort of loan would be most affordable for you.
What the iSelect home loan calculator will tell you
It will tell you roughly how much money you will be paying towards your home loan each month. This will allow you to budget properly. You will also be given information on how the principal amount will change over time, as well as details on interest charges.
How to use the iSelect home loan calculator
The main reason why people will use this loan calculator is so that they can easily see what they need to ‘aim’ for to get and view the home loan calculator repayment that is within their budget. This means that you can tinker with the data to see how a change in an interest rate (or the amount you borrow), can have an impact on your monthly repayments.
You will need to have the following data to hand when using the calculator:
- How much you are planning to borrow
- The length of the loan
- What type of loan you have against your home (e.g. fixed rate)
- Your interest rate
- How regular the payments are
- What type of repayment you will be making.
Your lender always has the ‘final’ word
Remember; as useful as the iSelect home loan calculator is, it is only ever going to be a guide to roughly how high your repayments will be each month. It is unable to take into account any fees that your lender may have in place. So, while the number provided by the iSelect home loan calculator should be fairly accurate, you should always listen to what a lender tells you what your repayment each month will be.