How does the mortgage stress calculator work?
To calculate your level of potential mortgage stress, simply enter your details into the available fields, including:
- Your pre-tax income,
- Your current mortgage interest rate, and
- Years remaining on your loan (optional).
The mortgage stress outcome will then show how close you may be to experiencing mortgage stress.
All calculations are estimates – they are not guarantees that you’ll be able to afford a particular home loan repayment and are not pre-qualifications or pre-approvals for borrowing.
These calculations are only accurate for the information entered, and do not take into account future changes to you/your partner’s income, your home loan interest rate, or your mortgage repayments.
Different lenders may use different serviceability criteria to measure the risk of mortgage stress when you apply for a home loan.
Results are calculated based on pre-tax income and do not take any other living expenses into account.
Some people on high incomes may be comfortable paying 30% or more on housing or some people may have a solid buffer or back-up plan to make them comfortable taking on a larger debt.
The calculator is for information purposes only. Any advice is general and has not taken into account your personal circumstances.
Any entered annual income(s) is converted to approximate monthly income by dividing the total by 12.
Approximate income tax is based off gross annual input and 2023 tax rates. Approximate taxable income is deducted from annual income to determine approximate disposable income.
Monthly loan repayments is based on entered interest rate, total loan value and years remaining. It does not account for interest only, other fees and charges or additional payments.
Results of debt to income higher than 30 per cent are assumed to be in mortgage stress.
What can I do if I am in mortgage stress?
If you find yourself facing mortgage stress, it’s crucial to seek guidance from a trusted expert. Contact your dedicated broker at The Loans Suite by calling 1300 741 077 or arrange a meeting through the convenient “Let’s Talk” button on our website. We’re here to support you through this challenging situation.
In addition, consider leveraging the free financial counselling services available in your state, such as the National Debt Helpline on 1800 007 007.
The Loan Suite can help talk to your lender or look at options to make your loan repayments more manageable, such as reducing repayments, utilizing excess funds, exploring interest-only payments, or restructuring your loan.
Refinancing with a new lender may be an option to secure a more competitive interest rate, but it’s important to weigh the associated fees and costs.
Our experienced team at The Loans Suite is ready to guide you through these options and help you find the best solution for your mortgage stress.
Looking to refinance? We analyse your financials, scour the market, and negotiate with the lenders to secure you a great outcome.
