Salestrekker calculates maximum borrowing capacity for the scenario entered in Client Profile.
Maximum borrowing is designed to closely match lender's actual borrowing capacity. Our target is less than +/- 5% variance from lender calculators for all lenders.
Each lender has various criteria that affect deal servicing, and Salestrekker simulates all of them in one calculator. One of the key elements is the expected loan interest rate. Lenders either add buffer rate or utilize the floor rate whichever is bigger (both vary from lender to lender). This means that accurate generic lender maximum borrowing capacity calculation is impossible.
Broker Tools has three places that calculate Maximum borrowing:
Maximum borrowing tab
Product search tab
Product compare tab
Maximum borrowing tab
Maximum borrowing tab requires you to enter expected rate in order to estimate deal servicing. Since various lenders will have different rates, we allow you to select one or more lenders to show servicing under that expected rate.
The following sections are critical in getting the calculators to present correct information:
Marital status and number of dependents (see linking contacts article here)
Current and post-settlement addresses (in case of new O/O loan, the future address needs to match the Security address)
Income (including any rental income for investment purpose)
Household expenses are accurately recorded and clients who live together are connected within the same household.
Liabilities (including exact loan expiry date and monthly repayment amounts)
Security (accurately entered security, i.e. "Existing security" for refinance, top-up and equity release loans)
Product selection
SVR discount
Maximum borrowing on product search
This is where a more accurate maximum borrowing figure can be found (except for products with a negotiated SVR discount):
Users can sort products by maximum borrowing capacity, where green items are above the required loan amount and red are below the loan amount.
Note that SVR discount can be applied on Review loan product tab, showing correct maximum borrowing for those products that are listed with their SVR:
Maximum borrowing in Compare loan products
This tab shows maximum borrowing capacity and Application pick-up time, to adequately reflect that the days displayed refer to the time it takes for lenders to initially pick-up a file.
Did you find a substantial difference having completed the lender servicing calculator and information in Client Profile/Broker Tools (i.e. >5% variance between two)? Please check four items listed above prior requesting our team to check the calculator for you.