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Bankwest Max Calculation:
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The Bankwest Max calculation determines the maximum borrowing capacity based on income and affordability factors, using Bankwest-specific borrowing assessment criteria with a 3% buffer rate.
The calculator uses the Bankwest Max formula:
Where:
Explanation: This formula calculates the maximum borrowing capacity by considering your income, what portion you can afford to allocate to loan repayments, and applying Bankwest's standard 3% assessment buffer.
Details: Accurate borrowing capacity estimation is crucial for home loan applications with Bankwest, helping you understand your maximum loan eligibility and plan your property purchase accordingly.
Tips: Enter your annual income in AUD and your affordability factor as a decimal (e.g., 0.3 for 30% of income allocated to repayments). All values must be valid (income > 0, affordability between 0-1).
Q1: What is the 3% buffer rate used by Bankwest?
A: Bankwest adds a 3% buffer to the current interest rate when assessing borrowing capacity to ensure you can afford repayments if rates rise.
Q2: How is affordability factor determined?
A: The affordability factor represents the percentage of your income that can be allocated to loan repayments, typically ranging from 25% to 35% depending on your financial circumstances.
Q3: Does this calculation include other debts and expenses?
A: This is a simplified calculation. Actual Bankwest assessment would consider your existing debts, living expenses, and other financial commitments.
Q4: Is this calculation specific to Bankwest?
A: Yes, this uses Bankwest's specific assessment methodology with their standard 3% buffer rate. Other lenders may use different assessment criteria.
Q5: Should I rely solely on this calculator for my borrowing decision?
A: This provides an estimate only. For accurate borrowing capacity assessment, consult directly with Bankwest or a qualified mortgage broker who can consider your full financial situation.