As per ASIC guidelines, please use these calculations with other sources to get a reasonable estimate of servicing ability.
In order to demonstrate you have made a reasonable attempt to calculate servicing, multiple calculations may need to be made. These can include but are not limited to the Mercury Borrowing Capacity calculator and Lender Servicing calculators.
Before you start your Borrowing Capacity Calculation
Please make note of the following:
- The Borrowing Capacity is calculated using a loan term of 360 Months (30 Years) and P & I. All calculations are an estimate only.
- The Issues Icon ( ) will appear if there is a discrepancy between the result displayed and the lender's calculator, i.e. changes in HEM Tables. You can find out what the issues are, if you hover your mouse over the icon. Like this;
To calculate negative gearing on an existing investment property, kindly use lender’s serviceability calculator for accurate results
- Enter all figures as Gross.
Why Mercury Borrowing Capacity Calculator Assessment rates are high comparing to lender serviceability calculator?
Lenders uses a default product and its Variable rate for serviceability calculations in Mercury Borrowing Capacity calculator.
Whereas in lender serviceability calculator, you can choose the product and the rate of your choice.
Lender Serviceability Calculator
Assessment rate = [Product Rate of your Choice + Buffer]
Mercury Borrowing Capacity Calculator
Assessment rate = [A default Variable rate + Buffer]
How to access the calculator
- Click on Start a Borrowing Capacity
- In the Calculators tab, select Borrowing Capacity in the left-hand panel.
- Click New Borrowing Capacity
From and Opportunity
- Open the Opportunity in the CRM tab.
- Select Calculations from the left-hand panel.
- Click the green plus symbol to open a new Borrowing Capacity
How to do a Calculation
- The below screen will appear
- Enter the applicant's details
Note: You can override the Living Expenses for the applicant. If the expenses are lower than the lender's amount, their amount will be used.
Enter the Income and Expenses except for Real Estate income, for all applicants
- Enter the Existing Real Estate details
Note: Only Real Estate that is not marked as 'To be purchased' or 'Clearing from this Loan' on the opportunity will populate here.
- To add Rental Income for a future Investment property or Investment property being refinanced. Just add a New Asset and only complete the Rental Income Frequency and Amount. Leave the Loan details fields blank.
Apply the ownership % for each applicant.
Click on Calculate and the results will populate
Attaching a Borrowing Capacity calculation to a new Opportunity
You can attach a Borrowing Capacity calculation to a new Opportunity.
You will find few lenders are missing when performed Borrowing Capacity Calculation in Mercury. The reason for this is, some lenders have not requested NextGen to enable them to be reflected in Mercury in search results.
Available in Mercury?
|Australian First Mortgage||-|
|Bank of Melbourne||Yes|
|Bank of Queensland||Yes|
|Better Choice Home Loans||-|
|Bluebay Home Loans||-|
|Collins Home Loans||-|
|CHL Essentials by Advantedge||Yes|
|CHL Select by Bendigo & Adelaide Bank||-|
|CHL Solutions by Pepper||-|
|Firefighters Mutual Bank||Yes|
|Gateway Credit Union||Yes|
|Keystart Home Loans||-|
|La Trobe Financial||-|
|Newcastle Permanent Building Society||-|
|P & N Bank||Yes|
|Paramount Mortgage Services||-|
|St George Bank||Yes|
|Teachers Mutual Bank||Yes|