It is tempting to start home shopping with a property price. A more practical starting point is the amount of money you could comfortably repay each month.
Why the repayment comes first
Mortgage repayments depend on interest, term and borrowed amount. If you start with your available monthly payment, you can estimate a principal amount using a mathematical annuity formula.
This does not mean a bank will lend that amount. Banks assess your debts, income, expenses, credit history and their own policies.
Remember the costs outside the instalment
Include monthly rates, levies, insurance, electricity, repairs and insurance; buying can also involve transfer duty, conveyancing fees and bond registration costs.
Try the home-loan repayment calculator with an editable interest rate and term.
Start from a monthly ceiling that includes ownership expenses
A bond instalment is not your whole home budget. Rates and municipal bills, sectional-title levies where applicable, household insurance, ongoing maintenance and initial transaction costs all require room in the plan. If you enter the maximum amount you can spare each month as the bond repayment, you may leave no space for these items.
Work in reverse. Choose a realistic all-in housing ceiling. Deduct expected recurring non-bond costs, then enter the remainder as the bond repayment budget. This is the figure a reverse mortgage calculator can translate into mathematical principal at a chosen interest rate and loan term.
Test a rate increase before treating the figure as affordable
Floating interest rates can change the instalment. Compare the same loan amount at today's written quotation and at a higher hypothetical rate. If a modest increase makes the plan impossible, the initial budget may be too tight. A longer term can lower the monthly instalment while increasing cumulative interest paid.
Two separate questions: can I qualify, and can I live with it?
A lender will assess income, debt obligations, credit history and its own policy. This website cannot determine approval. Your household needs a different evaluation: will the property remain manageable alongside savings goals, irregular expenses and other responsibilities? Use a personal cash-flow tool such as Payday Compass alongside the home-loan calculation.