Calculator Limitations
Limitations of Mortgage Repayment Calculators
A mortgage repayment calculator is limited by the data that is entered into it. You may have heard the expression: “garbage in garbage out”. Therefore, it is important to make sure that you enter accurate interest rates and other data when using mortgage calculators, especially when comparing to mortgage products.
Make sure you take into account things like establishment fees, recurring fees and exit fees. Even a small monthly fee could make a large difference over the life of a loan. Using advanced calculators with live data is more likely to provide accurate results.
Regardless of what type of calculator you use, during the life of the loan, there is often several irregular and unforeseen circumstances such as late payment penalties, redraws and lump sum repayments, which can significantly affect the results over a long period. Therefore, it is always wise to consider the results of a mortgage repayment calculator as an approximation. And the more accurate the calculator and the data, the better the approximation.