Calculations
DTI - Debt to income calculation
DTI = Debt / Income Income The monthly before tax total of income. All income(before tax) is added together and then divided by 12 to get a monthly value. i.e. Annual employment income if the borrower is an individual + (plus) All additional income: ...
Borrower surplus (NDI net disposable income) calculation
The surplus (NDI) calculation uses values supplied in the application submitted by the borrower in order to calculate a surplus or excess of funds that is estimated will be available to the borrower in order to pay for the finance. This surplus can ...
Max lend/borrow amount
The maximum amount the finance company will lend to the borrower. This is calculated when an application is evaluated and it can be placed in a decision tree or scorecard. The formula to calculate the max lend/borrow amount for customers can be found ...
Comparison rate
The comparison rate that is stored against an application is a rate calculated based on: term of the application repayment amount of the application the amount the borrower asked for excluding establishment fees number of repayments per annum A ...
Financial calculator
There is an easy to use financial calculator that can be saved and used to calculate the financial details for a finance agreement / application. The link to this calculator can be accessed here.