Use the Borrowing Capacity Calculator in Mercury Nexus to compare lender servicing outcomes for your client. This guide explains what each column means, how results are generated, and how to use them when assessing lender suitability.
Note : Not all lenders appear in the Borrowing Capacity Calculator or Lenders Mortgage Insurance (LMI) estimates. Some lenders have chosen not to participate.
Viewing income & DTI policy
Select the information icon in the first column to open the DTI and income policy slide-out.
This slide-out:
Shows the selected lender’s debt-to-income (DTI) and income policy
Filters income based on the income types you have selected
This allows you to quickly compare income policy across lenders without leaving the calculator.
Understanding calculator warnings
A warning icon appears when there is a discrepancy between:
The Mercury Nexus Borrowing Capacity result, and
The lender’s own servicing calculator
Common causes include updates to Household Expenditure Measure (HEM) tables or policy changes.
Hover over the warning icon to view details of the discrepancy.
Important: Discrepancies may occur while Connective is waiting for updated lender information. Where a warning appears, complete a lender-calculated assessment before proceeding.
Interpreting servicing status
The servicing status is generated using both the DTI ratio and maximum loan amount result.
If either the DTI or max amount is red, the servicing status is red
If both the DTI and max amount are green, the servicing status is green
If the max amount is green and the DTI is orange, the servicing status is orange
Use the servicing status to quickly identify lenders that may be suitable based on the data entered.
Understanding max amount status
The max amount status compares:
The requested loan amount (based on asset value and loan-to-value ratio), and
The lender’s maximum serviceable amount
Green indicates the requested loan is within the lender’s maximum
Red indicates the requested loan exceeds the lender’s maximum
This helps you identify which lenders can meet your client’s loan request.
Understanding DTI status
The DTI status compares your client’s DTI ratio against lender policy.
Green indicates the DTI is within policy
Red indicates the DTI is outside policy
Orange indicates the DTI may be outside standard policy but could be considered with further action
If the status is orange, contact the lender to confirm options.
TIP: Hover over the DTI value to view the lender's DTI policy, or open the DTI and income policy slide-out for more details.
Viewing monthly surplus
Monthly surplus shows the amount remaining after loan repayments and expenses are applied.
This column is hidden by default. You can enable it through column preferences in the results table.
Understanding living expenses
The living expenses column displays borrower expenses as determined by HEM.
Understanding total expenses
Total expenses include:
The higher of declared living expenses or HEM
Additional living expenses
Existing loan repayments
Understanding product rates
The product rate is the lender’s base rate and is used to calculate the assessment rate.
You can override the product rate to model different servicing outcomes.
To override a product rate:
Double-click the product rate cell
Enter the new rate and click outside the cell
The updated rate displays with an “edited” label
All servicing figures update automatically. To revert to original lender rates, select Revert rate overrides.
Understanding buffer and assessment rates
The buffer rate is set by the lender and applied in line with Australian Securities and Investments Commission (ASIC) guidance.
The assessment rate is calculated as:
Product rate plus a 3% buffer
Mercury Nexus uses this assessment rate to determine serviceability outcomes.
Need help?
If you need help understanding servicing results or using the Borrowing Capacity Calculator, contact your Partnership Manager or email [email protected].