The borrowing capacity calculator is a powerful tool to help you easily calculate how much your client can afford to borrow and which lenders will service them.
You can create a calculation from an Opportunity record in the CRM or from the Research app on the Mercury Nexus dashboard.
How do I create a borrowing capacity calculation from an opportunity?
Go to the CRM app.
Open the relevant opportunity.
Navigate to Calculations on the left-hand side menu,
Click +add and select borrowing capacity calculator.
How do I create a borrowing capacity calculation from the Research app?
Open the Research app
Select Borrowing Capacity from the left-hand menu
Click on the plus sign along the top menu to start a new calculation.
How do I complete a borrowing capacity calculation?
1. Start by entering the basic loan details – including a meaningful name, loan term, loan requested, dependents and purpose of the loan.
2. Navigate to the Borrower section and start filling in income and expenses for your client using the drop-down menu’s. Always add income as gross.
3. Click on the plus button to add an income/expense row and click on the trash can to delete a row.
4. To add a borrower, click on the plus borrower section.
5. Next enter their real estate details in the asset section. Select whether the asset is owner occupied or investment, the asset value and whether the property is being purchased or used as security.
Note: When 'Use as Security' is checked, 'Clearing' will be automatically selected and hidden as it assumes a different lender and clearing. If you add multiple assets as security, the total of these securities will appear at the top of the calculator.
Note: To add Rental Income for a future Investment property or Investment property being refinanced. Just add a New Asset and select Investment and Purchasing. The existing mortgage fields will be removed. Just add the expected rental income amount and frequency.
Click on Calculate and the results will populate in the right-hand panel.
There is a relationship between the Total Security, Loan Amount and LVR fields. Adding, deleting and adjusting figures in any of these fields will affect the other fields and update the Borrowing Capacity calculations.
Note: UBank will not currently appear in the list lender borrowing capacity results.