CCH Home Loan Calculator Help

 

Contents

What this calculator does

Interest rate

Regular repayment frequency

Select the value that you wish to calculate

Loan amount

Regular repayment amount

Loan term

Printing the results

More information

DISCLAIMER

 

What this calculator does

The CCH Home Loan Calculator is a "three in one calculator". You can use it to do any of the following:

The calculator assumes a normal "principal and interest" loan, which will be fully repaid over the period (not an "interest only" loan).

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Interest rate

Enter the annual interest rate that you feel is appropriate to your circumstances. The calculator assumes that this rate will apply throughout the life of the loan. However, many home loans have variable rates that change from time to time. If you are considering a variable rate loan, you should use an interest rate that reflects the likely average rate over the period of your loan. This is particularly important if you are considering a loan that has a special low rate for an initial period.

You can also experiment with a range of rates to see what a change in rates would do to your borrowing capacity. It is understood that some lending institutions make their calculations using an interest rate 2% above the current interest rate, in order to provide a buffer. You may wish to adopt a similar approach.

A sample rate is displayed by default. This is to show the format of the data to be entered; it is not a suggested value.

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Regular repayment frequency

Select the repayment frequency which suits your needs (per week, fortnight or month) from the drop-down list.

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Select the value that you wish to calculate

Click on one radio button (white circle), representing the value that you wish to calculate. (You will need to provide the other two values.) The choices are:

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Loan amount

When calculated by the calculator, "Loan amount" represents the maximum loan amount that can be fully repaid during the specified loan term based on the interest rate and repayment amount/frequency provided.

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Regular repayment amount

When calculated by the calculator, "Regular repayment amount" represents the amount you will need to repay each period (week, fortnight or month) in order to repay the specified loan amount, based on the loan term and interest rate provided.

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Loan term

When calculated by the calculator, "Loan term" represents the period of time that it will take to repay the specified loan amount based on the interest rate and repayment amount/frequency provided. The maximum loan term permitted by the lending institution would generally be 25 to 30 years, depending on the institution. If the calculator displays more than 30 years, you will need to reconsider the loan amount or repayment schedule that you can handle.

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Printing the results

To print the results, click on the "Printer Friendly Version" link, then select "File", "Print", from your browser menu on the printable report screen. (The reason for generating a separate printable report is that some browser versions will otherwise print the default values.)

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More information

For more information on planning your financial future and appropriate investments, see your financial adviser.

CCH publishes information for professionals on financial planning, superannuation and taxation, including:

Electronic products

CCH Financial Planning Navigator

CCH Electronic Superannuation Library

Australian Electronic Master Tax Guide

Australian Master Superannuation Guide

CCH Electronic Tax Library

CCH Accountants Tax and Business Series

Print products

Australian Master Tax Guide (annual book)

Australian Master Financial Planning Guide (annual book)

Australian Master Superannuation Guide (annual book)

CCH Australian Superannuation Law and Practice (looseleaf subscription)

Hands on Solutions: Superannuation (looseleaf subscription)

Hands on Guide: Financial Planning (looseleaf subscription)

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DISCLAIMER

This calculator is made available by CCH for use subject to the following:

 © 2000 CCH Australia Limited ABN 67 000 630 197

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