Mortgages, budgeting and the other nuances of bank lending aren't always the easiest things to understand… and fair enough too. As a mortgage broker I don’t always have the numbers and exact figures off the top of my head, and I use online tools and calculators every day to help me with my job. I’ve put together my top 5 tools that I use every day, that are bound to help the everyday borrower.
1. Best Repayment Calculator - Sorted.co.nz
This is simply put, the most comprehensive repayment calculator out there. In the one screen you get the ability to check the benefits of extra repayments, see the total term of the loan and the projected balance throughout, include an interest only term and split the loan into multiple tranches. All the info you could want is all together in one place to make this the best calculator available. Whilst I have my moments with the time out feature if i’ve left the page for too long, and the requirement for a log in to save or compare to other structures, these costs are far outweighed by the strengths… especially considering repayments calcs are one in a million this is the one.
2. Best borrowing calculator - SBS Bank
Now all of the calculators out there do similar job, and the accuracy of each is hard to tie down as it is such a fluid and ever moving scale that they are compared to in order to be 100% accurate… but that being said, I always resort to the SBS calculator for 2 big reasons.
It’s simple.
At the end of the day your mortgage broker should be the one providing personalised and specific advice, not an online tool that doesn't know you from your neighbour, so simplicity and ease of use is KEY.
It scales back extra income.
Banks won’t every consider all of your bonuses, overtime, commission or extra income. Whilst it may seem harsh it’s the truth. The SBS calc factors this in to their calculation when declaring “other income” which for me is a big win.
3. Equity Calculator - OPES Partners
Equity calculations in all honesty are simple arithmetic that isn’t hard to put together. It’s a matter of understanding property purpose (live in or rent out) and loan balance. That being said, OPES Partners do a great job distinguishing between “equity” and “usable equity” which I’ve always felt is an otherwise under-explained facet of the borrowing market in NZ. Their calculator is mobile friendly (if you give it ½ a sec to load) which can’t be said of others, and leads on to other factual videos and definitions of key words and phrases that make a typically simple tool, far more detailed than their competitors.
4. Simplest repayment calculator - Settled
Now I know… I’ve already included a repayment calculator. As a mortgage adviser, my brain is drawn to and impressed by our top spot calculator (sorted.co.nz), but for those not interested in the effects of an extra $2 compared to $8 each week, and not considering an interest only period or what your balance might look like in 12.87 years… this is where you simplify. Settled do a fantastic job of giving you the important info, easily, clearly, without any fuss. It's simply to absorb and easy to understand, which sometimes is exactly what the doctor ordered.
5. Best budgeting tool - Sorted.co.nz
Yeap… Sorted again, but in all fairness they’ve earned this. Their budgeting tool is simple enough to be easy to use, whilst ensuring it is also detailed enough to factor in all the nuances required without unnecessary confusion. I love that it includes easy questions that relate to everyday people instead of requiring financially driven number responses. It just looks good and simply put, it’s easy to use… which for me is everything I can ask for.
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