Low Deposit Home Loan Calculator
Understanding your borrowing power is crucial when buying a home. Our low deposit home loan calculator helps you estimate how much you can borrow and the potential loan repayments.
- Enter the property price.
- Enter the deposit amount as a percentage.
- Enter the interest rate.
- Enter the loan term in years.
- Click ‘Calculate’ to see your results.
The calculator uses the following formula to estimate your borrowing power:
Borrowing Power = (Property Price / (1 + (Deposit % / 100))) – (Loan Term * Interest Rate * Property Price)
The loan repayment is calculated using the formula:
Monthly Repayment = (Loan Amount * Interest Rate) / 12
| Lender | Average LVR |
|---|---|
| Bank A | 60% |
| Bank B | 55% |
| Bank C | 65% |
| Loan Type | Average Interest Rate |
|---|---|
| Variable | 3.5% |
| Fixed | 3.8% |
| Interest-Only | 4.0% |
- Consider your budget and lifestyle when choosing a loan term.
- Shop around for the best interest rate.
- Regularly review and adjust your budget to account for changes in interest rates.
What is a low deposit home loan?
A low deposit home loan is a mortgage that requires a deposit of less than 20% of the property value.
What is Lenders Mortgage Insurance (LMI)?
LMI is a fee paid by borrowers with a deposit of less than 20%. It protects the lender if the borrower defaults on the loan.
For more information on home loans, visit the Consumer Financial Protection Bureau or the U.S. Department of Housing and Urban Development.