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ANZ Home Max Formula:
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ANZ Home Max is a specific home loan borrowing capacity calculation used by ANZ Bank to determine the maximum amount a borrower can potentially borrow based on their income and current interest rates.
The calculator uses the ANZ Home Max formula:
Where:
Explanation: The formula calculates the maximum borrowing capacity by taking 30% of the borrower's annual income and dividing it by the interest rate to determine the sustainable loan amount.
Details: Accurate borrowing capacity calculation is crucial for home loan applicants to understand their budget limitations, avoid over-borrowing, and ensure they can comfortably meet repayment obligations.
Tips: Enter your annual income in AUD and the current ANZ interest rate percentage. Both values must be positive numbers to calculate a valid result.
Q1: Why does ANZ use 30% of income?
A: ANZ uses 30% as a conservative debt-to-income ratio to ensure borrowers can comfortably manage repayments while accounting for other living expenses.
Q2: Is this the exact amount I can borrow?
A: This calculation provides an estimate. Actual borrowing capacity may vary based on credit history, existing debts, and other financial factors considered by ANZ.
Q3: What income should I include?
A: Include all verifiable annual income sources such as salary, wages, bonuses, and investment income that ANZ would consider in your application.
Q4: How often do ANZ rates change?
A: ANZ interest rates can change periodically based on market conditions and Reserve Bank of Australia decisions. Always check current rates before applying.
Q5: Are there other factors that affect borrowing capacity?
A: Yes, ANZ also considers credit score, existing debts, living expenses, dependents, and the loan-to-value ratio when assessing borrowing capacity.