| What is the Additional Monthly Amount ? |
| This is the additional amount you believe you can afford each month, over and above your required monthly instalment. It enables you to pay of your loan faster. |
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| What is the repayment term ? |
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The length of your loan repayment period will directly affect your required monthly instalments. The longer your repayment period, the lower your monthly instalments will be, however the total interest cost over the life of the loan will increase. The maximum repayment term is 20 - 30 years and is dependent on the home loan amount.
As a guideline : You may shorten the expected repayment term by increasing your monthly instalments. |
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| What are the monthly installments ? |
| Over the term of the loan you will repay your home loan by way of regular monthly payments of principal and interest. Monthly instalments are normally paid to the lender via debit order from your bank account. During the first few years, most of your payments will be applied towards interest. During the final years of your loan, your payment amounts will be applied primarily to the remaining principal debt. The amount of your monthly instalment can be affected by changes in interest rate and changes in the principal amount of your loan. |
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| How to use this affordability calculator |
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This calculator is designed to answer 3 simple questions relating to home loan affordability. We suggest you move through the questions beginning with Q1, moving onto Q2 and lastly completing Q3.
*Q1 - What loan amount do I qualify for ? - Will assess the home loan amount you are likely to qualify for, based on your net surplus income. It will give you an idea of the property price you will be able to afford. *Q2 - What will my monthly repayment be ? - is designed to calculate what your monthly bond repayments will be on a property you know the cost of and are interested in purchasing. *Q3 - What if I pay extra each month ? - follows on from Q2. Having seen what your monthly repayments are likely to be, you may decide that you are actually able to afford a to pay a little bit extra each month towards your bond repayments. Q3 allows you to see the impact in terms of savings and the loan term if you pay more each month. You can play around with this calculator as much as you want, making changes to various input fields. Please remember though to hit the CALCULATE button, and recalculate, everytime you make a change. The CLEAR button simple clears all the input fields for you, making it easier for you to do the calculation again. |
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