Use this guide to calculate how much your client can afford to borrow and identify which lenders may service the scenario using Mercury Nexus.
Where you can create a borrowing capacity calculation
You can start a borrowing capacity calculation from either an Opportunity in the CRM or directly from the Research app.
Create a borrowing capacity calculation from an opportunity
Open the CRM app and open the relevant opportunity.
Select Calculations from the left-hand menu.
Select Add and choose Borrowing capacity calculator.
Create a borrowing capacity calculation from the Research app
Open the Research app from the Mercury Nexus dashboard.
Select Borrowing capacity from the left-hand menu.
Select the plus (+) icon in the top menu to start a new calculation.
Complete a borrowing capacity calculation
Enter loan details
Enter the core loan details, including:
A clear and meaningful calculation name
Loan term
Loan amount requested
Number of dependants
Purpose of the loan
Add borrower income and expenses
Open the Borrower section.
Add income and expenses using the drop-down menus.
Always enter income as gross.
Tip: Use the plus (+) icon to add a new income or expense row. Use the trash icon to remove a row.
Add additional borrowers
Select Add borrower to include another applicant and enter their income and expenses.
Add assets and security
Open the Assets section.
Select whether the property is owner occupied or investment.
Enter the asset value.
Select whether the property is being purchased or used as security.
Important: When Use as security is selected, Clearing is automatically applied and hidden. This assumes a different lender and clearing arrangement.
If you add multiple assets as security, the total security value displays at the top of the calculator.
Note: To add rental income for a future investment purchase or an investment refinance, add a new asset, select Investment and Purchasing, then enter the expected rental income amount and frequency. Existing mortgage fields will be removed.
Calculate borrowing capacity
Select Calculate to generate results. Borrowing capacity and lender outcomes appear in the right-hand results panel.
There is a relationship between Total security, Loan amount, and loan-to-value ratio (LVR). Updating one of these fields automatically adjusts the others and refreshes borrowing capacity results.
Note: UBank and People’s Choice Credit Union (PCCU) do not currently appear in borrowing capacity results.
What happens next
Review lender results and serviceability outcomes to guide product selection and client discussions. Adjust inputs and recalculate as needed to test different scenarios.
Need help?
If you need help completing a borrowing capacity calculation in Mercury Nexus, contact your Partnership Manager or email [email protected].