Who thinks about his own real estate, must calculate a lot. Planning begins long before the first inspection takes place. The first question is: “How much house can you afford? It also makes sense to calculate loans at different interest and repayment rates. This will tell you how long it will take to finance your dream home. At the end of the day, you will be faced with the question of the cheapest provider. Find out here from Singapore licensed moneylender Cash Mart what the various loan calculators can and cannot do.
Calculation aids are useful
In addition to the widely used calculators for credit comparison, you can also use numerous calculators to help you with planning. Since the purchase of a single-family house or a condominium is a unique experience for most people, these calculation aids are very useful. They help you to estimate the costs correctly and not to forget any items. In addition, you will get a precise overview of how different conditions for construction financing affect the monthly rate and the total financing duration and costs.
You can choose from the following loan calculators:
Purchase and rental calculators show you whether a home of your own is financially worthwhile for you or whether you live cheaper as a tenant.
Budget calculators help you to determine the monthly amount you can spend on real estate financing.
Budget calculators provide an overview of how high the real estate loan can be that you can reliably service.
Building cost calculators help you to determine the incidental building costs incurred.
Land register and notary cost calculators make this point of expenditure transparent.
Repayment calculators make it possible to compare different initial repayment rates.
Full repayment calculators show how high the charge will be if you completely repay the loan during the fixed-interest period.
Early repayment compensation calculators help you decide whether it makes sense to repay an existing building loan prematurely and replace it with a cheaper loan if interest rates fall.
Step by step to your own home
First and foremost is the determination of the monthly budget. Spontaneously, hardly anyone can name the sum he can spend monthly on a real estate loan. With a loan calculator to determine the household costs, you know the exact amount within minutes. The calculator helps you not to forget any expenditure.
Tip: Determining the house budget is particularly important. If you can tell your bank advisor exactly what your income and expenses are, he can tailor the offer to your needs. Otherwise, the bank reckons with so-called household lump sums in order to obtain an approximate value. However, these amounts can differ considerably from your personal situation.
How much loan may it be?
If you know your personal budget for real estate financing, it will be easier to determine how much house you can afford. This formula for calculating the maximum loan amount has proven its worth. The monthly installment, interest rate and repayment rate together make up the maximum loan amount.
The maximum loan amount plus your equity capital is the amount that the property can cost including all ancillary costs. With a loan calculator you can comfortably play through different interest and repayment rates and do not have to resort to paper and calculators.
Tip: Be sure to determine your maximum loan amount with different interest rates. This way you know exactly how different interest rates affect you and avoid nasty surprises if the market interest rate has risen significantly when you need follow-up financing. Plan for sufficient financial leeway and refrain from using up the potential sum completely.
Calculate the redemption cleverly
You should use the current low interest rates to agree on as high an initial repayment as possible for annuity loans. The higher the repayment at the beginning of the instalment payment, the faster the property is debt-free. At the same time, you save cash, as you have to pay less interest overall. The following table shows the differences in a loan of 250,000 euros with an assumed interest rate of 1.5 percent and a fixed-interest period of 10 years:
Loan calculators for calculating the various aspects of planned real estate financing are practical and convenient tools. The different loan calculators support prospective customers purposefully with the planning of a possible real estate financing. They provide you with a reliable overview of your financial resilience. In addition, the loan calculators show in an easily understandable and transparent way how the interest rate and the repayment amount affect the total financing costs, the financing duration and the monthly instalment. With a little computing, you can easily estimate which financing is right for you and your life.
You can find loan calculators online to find the cheapest provider for a real estate loan, for example Interhyp’s personal interest calculator. You enter the following information and the loan calculator compares the conditions of many different banks for you:
- Purchase price
- Type of property (single-family house, condominium, plot only)
- Desired loan amount
- Desired amount of the monthly installment or initial repayment rate
- Postal code of the possible property
Based on this information, the provider’s program compares the conditions of the various banks and shows you an overview of the selected offers from cheap to expensive.
Note: Many providers require you to enter your personal data such as name, address, telephone number and date of birth before they can display or send you the results. Read the information on data protection. Some offers offer an initial comparison without entering personal data such as name or address.