When the budget is tight and every penny counts it pays to be prepared.

One of the first questions any home builder will ask you is “how much is your budget”. How much your budget is will depend on two things, 1. What the bank will lend you and 2. What you can afford. Not being mortgage brokers or a bank ourselves we can’t tell you how much a bank will allow you to borrow but we can point you at a couple of great tools that will help you figure out the “how much can I afford” side of the equation.

There are a lot of mortgage or home loan calculators on the web and they all give you pretty much the same information. How much will the mortgage cost me but we recommend not only working out how much the mortgage will cost you using a mortgage calculator but also working out a budget and again there are a million  budgeting tools out there on the web (we checked google and there are 23 million pages that come up if you look for a budgeting tool).

We like to use the Easy Budget calculator to play with our income and expenses and see what would happen if our mortgage cost a little more or perhaps was a little less.

Over on the Home Loan Calculator website you can not only see what a mortgage will cost you at various interest rates but also how much interest you will pay and how much you could save if you paid a little extra or changed your payments from monthly to fortnightly.