Calculator Descriptions and Assumptions: Updated 18/10/2013. Basic Loan Repayments

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1 Calculator Descriptions and Updated 18/10/2013 Basic Loan Repayments This calculator compares 4 different loan scenarios using the minimum required inputs. The end statement compares the least expensive loan with the most expensive loan and shows the difference between the two. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment selected, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. Bi-Monthly Repayments Some people choose to pay half of their monthly repayment each fortnight. This in effect gives you an extra repayment every year. This calculator will show you how much time and interest you can save over the term of you loan if you make bi monthly repayments instead of fortnightly repayments. The calculated monthly repayment is halved and paid towards your loan fortnightly. The extra amount paid and frequency increase reduces the loan term and total interest paid. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. Comparison Rate A principal and Interest loan calculator with a honeymoon rate and period with the addition of calculating the comparison rate. The Comparison rate takes into account all periodic fees, establishment fees and discharge fees. It can give you a more accurate idea of how much you can expect to pay over the life of your loan. Comparison rates in advertisments are calculated based on a 25yr term and a loan amount of $150,000 loan. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks. Interest is calculated by compounding monthly. Repayments are made at the start of each period. It does not take into account up-front fees and monthly/annual account fees. Rounding is made at the end of the calculations and not at each payment period You should consult a finance professional before you make decisions based on this calculator. Complete Loan Comparison Compare two different loans using their individual honeymoon rates, upfront fees, monthly fees and discharge fees. It will show the total interest accumulated for each loan and which of the two lenders will cost you more. Both Loans are based on the common loan amount and term. One year is 52 weeks exactly and a month is 52/12 weeks. Interest is calculated by compounding monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period. You should consult a finance professional before you make decisions based on this calculator.

2 Extra Repayments This calculator will show the amount you can save if you make extra repayments at each period instead of the minimum amount. Starting the extra repayments earlier on in the loan will have a greater increase in the interest and time saved. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. How Long to Repay? Instead of calculating the minimum payment amount required each period, the user determines what amount they would like to pay and how this will effect the total amount of interest owed and time saved. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. How much can I borrow? Gain an estimate for the amount you may be able to borrow based on your income and expense. The borrowing amount specified is an indicative value and not an exact value as there may be other criteria you will have to satisfy. This calculator is not a guarantee you will be eligible for a loan. Assumptions Interest rates remain the same for the term of the loan. The amount you can borrow is calculated on an interest rate currently 8.00%. If the interest rate entered is above this amount then the borrowing amount is calculated using your inputed interest rate. In the future interest rates may rise which will effect your periodic repayment amount. 100% of your net income is considered in the calculations. 80% of rental income is considered in the calculations. Monthly credit card repayments are taken as 3% of your limit The Household Expenditure Measure is used for your living expenses. This takes into account all your food, clothing, transport, utilities, entertainment, education etc. Your actual living expenses are likely to be more. Current yearly values for the HEM are: Single No Dependants $14,558 Single 1 dependant $17,538 Single 2 dependant $20,517 Single 3 dependant $23,497 Single 4 dependant $26,476 Single 5 or more dependants $29,456 Couple No Dependants $26,018 Couple 1 dependant $31,171 Couple 2 dependant $36,325 Couple 3 dependant $41,478 Couple 4 dependant $46,631 Couple 5 or more dependants $51,784 One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks.

3 Interest is calculated by compounding monthly. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. Lump Sum Payments This calculator will show the amount you can save if you make a single lump sum payment on the loan before the end of loan term. Making the payment earlier on in the loan will have a greater increase in the interest and time saved. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. P & I / Interest Only Dual calculator that shows a Principal & Interest loan or an Interest Only loan. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. Remaining Balance A principal and Interest loan calculator with a honeymoon rate and period that shows how much principal is remaining at the end of any given year. Interest rates remain the same for the term of the loan. One year is 52 weeks exactly, a month is 52/12 weeks. Interest is calculated by compounding monthly. Repayments are made at the start of each period. It does not take into account up-front fees and monthly/annual account fees. Rounding is made at the end of the calculations and not at each payment period You should consult a finance professional before you make decisions based on this calculator. Reverse Mortgage Coming Soon Split Loan The Split Loan Calculator has an initial term that splits the loan repayment into a fixed rate portion and a variable loan portion. The dollar amount entered in the fixed portion of loan is calculated at the fixed rate for the term of fixed period. The principal minus the fixed portion of the principal is calculated at the variable rate. After the fixed period has finished the remainder of the principal is calculated at the Variable rate. One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks. Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly. Repayments are made at the start of each period. Rounding is made at the end of the calculations and not at each payment period

4 It does not take into account up-front fees and monthly/annual account fees. You should consult a finance professional before you make decisions based on this calculator. What can I afford to borrow? This calculator lets you know the amount you could afford to borrow and comfortably pay back based on your current expenditure. This is not a guide as to what the banks may lend you but what you are currently paying towards rent, savings and available surplus cash you have to put towards a loan. Assumptions Your available income remains constant through out the term of the loan. Interest rates may rise in the future which may effect your ability to make the repayments. It uses a constant interest rate for the full term and compounds on the same periodic basis as the frequency of savings payments you select It assumes each year is divided into 52 weeks exactly, 26 fortnights and 12 months of equal length and that the specified periodic payments are made at the start of each period that you have selected. You should consult a finance professional before you make decisions based on this calculator Achieve my Savings Target The Savings Target calculator will determine what periodic payments you will need to make to achieve your savings goal. Interest rate remains constant for the savings term. The total is calculated assuming the interest earned being invested back into the savings account. Inflation is not taken into account. Consider this when you are setting your savings target. Account and transaction fees are not taken into account and it makes no allowance for any income tax payable on the interest earned. It uses a constant interest rate for the full savings period and compounds on the same periodic basis as the frequency of savings payments you select It assumes each year is divided into 52 weeks exactly, 26 fortnights and 12 months of equal length. Payments are made at the start of each period that you have selected. You should consult a finance professional before you make decisions based on this calculator. Budget Calculator The budget calculator helps you keep track of your finances and where your money is allocated. It will show if your expenses are greater than your income and how much you are in surplus per year/quarter/month/week. You can save your information if you wish to come back to the calculator at a later date. The information is saved on cookies on your computer and no record of your input is kept or used by this web site You should consult a finance professional before you make decisions based on this calculator. Income Tax This calculates tax only for Australian Residents. The Medicare levy (usually 1.5%) or Medicare Levy Surcharge (1%-1.5%) has not been included. Your actual tax owed will also depend on rebates and tax offsets that may lower the tax you have to pay. Please consult your accountant for an accurate and detailed calculation. Lease Monthly lease payments will be determined from the vehicle/equipment value, current interest rate, the term of the lease and the residual. It uses a constant interest rate for the full term and compounds on a monthly basis.

5 It assumes each month is 52/12 weeks. Monthly payments are made at start of each period if in advance is selected and at the end of each period if in arrears is selected. Dealer fees, account fees, tax benefits and taxes owed have not been taken into account. Consider the vehicle depreciation when using this calculator. A residual that is too large may risk a liability at the end of the term (negative equity). You should consult a finance professional before you make decisions based on this calculator Savings Calculator Savings calculator will show your accumulated savings as well as interest accumulated over a specified time term. Interest rate remains constant for the savings term. The total is calculated assuming the interest earned being invested back into the savings account. Inflation is not taken into account. Consider this when you are setting your savings target. Account and transaction fees are not taken into account and it makes no allowance for any income tax payable on the interest earned. It uses a constant interest rate for the full savings period and compounds on the same periodic basis as the frequency of savings payments you select It assumes each year is divided into 52 weeks exactly, 26 fortnights and 12 months of equal length. Payments are made at the start of each period that you have selected. You should consult a finance professional before you make decisions based on this calculator.