1. What is the CommBank Max Calculation?

The CommBank Max calculation estimates your maximum borrowing capacity for a home loan based on Commonwealth Bank's specific lending criteria. It considers your income, expenses, and applies a 3.5% assessment rate to determine how much you can borrow.

2. How Does the Calculator Work?

The calculator uses the CommBank Max formula:

Where:

• \( \text{Income} \) — Your annual income (AUD)
• \( \text{Expenses} \) — Your annual expenses (AUD)
• \( 3.5\% \) — Commonwealth Bank's assessment rate

Explanation: This calculation determines how much you could potentially borrow based on your financial capacity to service a loan.

3. Importance of Borrowing Capacity Calculation

Details: Understanding your borrowing capacity is crucial for home loan planning, budgeting, and determining what property price range you can afford when applying for a Commonwealth Bank home loan.

4. Using the Calculator

Tips: Enter your annual income and expenses in AUD. Ensure expenses are accurate and include all regular financial commitments. The calculator will estimate your maximum borrowing capacity based on Commonwealth Bank's criteria.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculation specific to Commonwealth Bank?
A: Yes, this uses Commonwealth Bank's specific formula with a 3.5% assessment rate, which may differ from other lenders.

Q2: What expenses should I include?
A: Include all regular expenses such as living costs, existing loan repayments, credit card limits, and other financial commitments.

Q3: Does this guarantee loan approval?
A: No, this is an estimate only. Final loan approval depends on additional factors including credit history, employment stability, and property valuation.

Q4: How often does Commonwealth Bank update their assessment criteria?
A: Lending criteria can change periodically based on market conditions and regulatory requirements. Always check with Commonwealth Bank for their current policies.

Q5: Can I use this for investment property loans?
A: The calculation method may differ for investment properties. Consult with Commonwealth Bank for specific investment lending criteria.