1. What is the ANZ Loan Borrowing Calculator?

The ANZ Loan Borrowing Calculator helps you determine how much you can borrow based on your affordable monthly payment, interest rate, and loan term. It uses standard ANZ loan parameters with rates typically between 5.99-8.99% p.a. for car loans.

2. How Does the Calculator Work?

The calculator uses the loan borrowing formula:

Where:

• \( P \) — Principal amount (maximum borrowing, AUD)
• \( PMT \) — Affordable monthly payment (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months

Explanation: The equation calculates the present value of a series of future payments at a given interest rate.

3. Importance of Borrowing Capacity Calculation

Details: Knowing your borrowing capacity helps you budget effectively and ensures you don't overcommit to loan repayments you can't afford.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, select an interest rate between 5.99-8.99% (typical ANZ car loan rates), and choose a loan term in months (1-84 months).

5. Frequently Asked Questions (FAQ)

Q1: What interest rate should I use?
A: ANZ typically offers 5.99-8.99% p.a. for car loans. Use the higher rate for conservative estimates.

Q2: How does loan term affect borrowing capacity?
A: Longer terms increase borrowing capacity but result in more interest paid overall.

Q3: Are there any fees not included in this calculation?
A: Yes, ANZ loans may have establishment fees, monthly fees, or early repayment fees not reflected here.

Q4: What's the maximum loan term available?
A: ANZ typically offers car loans up to 7 years (84 months), but shorter terms have lower rates.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual loan amounts depend on credit assessment and ANZ's lending criteria.