The Borrowing Capacity Calculator pulls together a lot of information to help you and your clients. We’ve outlined the data that is displayed in each column, how the data has been generated and it’s purpose.
Note : Not all lenders appear in the Borrowing Capacity Calculator and LMI estimate. Some lenders have opted to not be included.
Income & DTI Policy Slide-out
If you select the information icon in the first column a slider will appear from the right-hand side. The Slider displays the DTI & Income Policy for the selected lender, and filters income based on the income types selected.
This is a useful way to quickly see income policy for all lenders without having to navigate away from the calculator.
Calculators Under Construction
A warning icon will appear if there is a discrepancy between the result displayed in the Mercury Nexus Borrowing Capacity and the lender's calculator, for example changes in HEM Tables.
By hovering over the warning icon, you can see details about the discrepancy.
This can happen if Connective is waiting on information from lenders, so this is a useful way to know where there may be a discrepancy and it’s best to conduct a lenders calculation as well.
Servicing Status
This is generated from the status of DTI ratio and Max Amount:
If either the DTI or Max Amount is red, the servicing status will be red.
If both the DTI and Max Amount are green, the servicing status will be green.
If the Max Amount is green and the DTI is orange, the servicing status will be orange.
The servicing status is a useful tool to quickly see which lenders are appropriate for your client based on the data you have entered.
Max Amount Status
Compares the loan requested amount (calculated by the asset value and LVR) with the lender's max amount:
If the loan requested is below the Max Amount, the status will appear green.
If the loan requested is above the Max Amount, the status will appear red.
The max amount status is a useful way to see which lenders will meet the loan requested by your client(s).
DTI Status
Compares the DTI ratio with the lender policy:
If the DTI ratio is within the lender's policy the status will appear green.
If the DTI ratio is outside the lender's policy the status will appear red.
If the DTI ratio is not within policy, but there may be further actions that can be taken the status will appear orange. It is advisable you contact the lender in this case.
TIP: Hover over the DTI amount to see quickly see the lenders DTI Policy or click on the DTI and Income Policy Slider for a larger view.
The DTI Status is a useful way to quickly determine which lenders will service your client based on their Debt-to-Income ratio.
Monthly Surplus
Monthly surplus refers to the amount remaining after loan and expenses have been paid.
This column is hidden by default, but it can be added to the results table by enabling it in the column preferences.
Living Expenses
This column displays the living expenses of the borrower(s) as determined by HEM.
Total Expenses
Totals the basic living expenses compared against HEM and taking the higher of the two + additional living expenses + existing loan repayments.
Product Rate
This is the base rate of the product and is used to calculate the assessment rate.
You can override the product rate to change the assessment rates within the Borrowing Capacity Calculator.
To change the product rate:
Double click on the product rate you would like to edit
Type in the new rate and click out of the cell
You will see the new rate appear and the word edited next to it so you can tell which rates have been changed
The assessment rate and all the new loan figures will appear based on the new rate
Want to go back to the original lender rates? Click on Revert Rate Overrides and all the rates will convert back.
Buffer Rate
This is the lender buffer rate and is applied when calculating serviceability as determined by ASIC.
Assessment Rates
To calculate the assessment rate, the Mercury Nexus Servicing Engine takes the actual product rate + 3% (buffer).