House Loan Calculator
One of the best ways to ensure you have an idea of what you can afford when getting a home loan would be to use what’s called a home loan calculator. These home loan calculators can be found on different websites and several banking websites in the Malaysian market. The reason these calculators are made to available is that they give users a chance to be better prepared. On top of all this they come with certain perks:
- The majority of home loan calculators are easy to use. All you need to do is enter in about four key components of information and you’re ready to go. This information would include the total amount of the home you’re looking to purchase, your down payment, the rate of interest you expect to get, amortization as well as your payment period.
- The calculations you get are fairly good estimates, which means you can use them in actual negotiations. However, you can’t fully trust in the estimates you’d get using these calculators. The main reason is because they usually don’t factor in important information about you such as what your credit profile is or how much money you earn. This type of information is critical.
- You can compare the results you’d get using different house loan calculators on different Malaysian bank websites. Now why would someone want to do this you might ask? Well if you’re willing to go through the motions with at least three different banks and the estimate is the same for all of them, then you can more easily rely on the estimation.
- These calculators can help you to know what adjustments you need to make to how you present your income when you go to a bank. If you don’t like the estimates you’re getting with these calculators, then you need to make adjustments to the information you’re providing. Chances are if the results you get are more desirable, then it’s because you’ve made yourself look more desirable as a credit risk.
A home loan calculator should always be used to help you determine or at least get an idea of what you can afford, but if you feel like other important information would factor into this you need to consider that. You can get pre-approved for a housing loan depending on which bank you went through in Malaysia and the best part is they would factor in things like risk profile and income history. You can think of it as a more comprehensive way to determine what you can actually afford.
Are all home loan calculators the same or do they all require exactly the same type of information every time?
If you want to get a simple estimate of what you can afford to borrow with the housing loan you’re hoping to get, then using a basic calculator provided on certain websites is more than enough. However, if the goal is for you to get more reliable information, then you might want to search for an option that requires you to fill in additional fields. Of course these fields would vary, but it’s safe to say the more information a home loan calculator requires of you the better the results will be.
The reason why it can sometimes be tough to find such options is because people might not want to take the time to use more complex options. Don’t let this be you. If you are willing to take more than a few minutes to find an option that requires more information, then this will benefit you greatly and you’ll be better prepared.