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<calculator>
  <vos>
    <common>
      <BorrowingPowerAssumptionsText type="cdata"><![CDATA[<p><b><font size="+1"> Calculator Information</font></b></p><p>The Borrowing Power Calculator calculates the maximum amount of loan available based on the income and expenses entered. Default values provided assist in giving an estimate of the expenses and other factors which may determine the amount available for a loan.</p><p>Calculations are based on interest rates for owner occupiers for some products, and results will vary if loan is for investment purposes.</p><br /><p><b><font size="+1">Calculator Assumptions</font></b></p><p><b>Expense Details and Default Values</b></p><p>    <br />a) Default core expense annual allowance - borrower assumed to have core level of annual expense, depending	 on whether single or joint and the number of dependants.<br />b) The cost of living expenses are based on the Household Expenditure Measure (HEM).This calculator takes into account the current cost of living but does not take into account any expected future changes in the cost of living, your geographical location, type of property or the internal risk setting of the individual lenders.<br />	c) Default extra core expenses for more than 4 dependants - currently set at $5,616<br />d) Maximum percentage of income available - percentage of income available for paying expenses and servicing proposed borrowing, default currently set at 100%.<br /> e) Credit card monthly repayments are taken into account and this reduces the maximum loan determined by the calculator. The monthly credit card payments for a 3 year amortising loan with interest charged at 22% per annum with monthly compounding is computed and assumed to be paid by the borrower thus reducing their capacity to service other debt. Credit card fees which may be levied are not included in this calculation.</p>   <p> <b><br />Loan Details</b></p><p>    <br />a) Interest rate increase allowance buffer - calculator has capability to assume a higher interest rate than rate entered by user when determining maximum amount that can be borrowed. This allows for affordability of possible rate increases under the loan. The current version of the calculator uses the higher of the user entered interest rate or 7.25% assessment rate.<br />b) Rounding rules for amount of loan - the calculator has the ability to round the maximum loan amount. The default is usually the current setting of the lower $1,000. Note that the amount of loan is calculated using the interest rate entered, plus any interest rate buffer, and then the resulting loan amount is rounded as required.<br />c) Interest rate for loan repayment - monthly repayment is calculated in respect of the rounded loan amount and using interest rate entered, not including any interest rate buffer. <br /> <br /><b>Length of Month</b></p>    <p> <br />All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month. <br /><br /><b>Number of Weeks &amp; Fortnights in a Year</b></p><p><br />One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366. Fortnightly repayments are calculated by dividing the monthly repayment by 2 and weekly repayments are calculated by dividing the monthly repayment by 4.</p><p>    <b><br />Rounding of Amount of Each Repayment</b></p>   <p><br />In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts.</p>]]></BorrowingPowerAssumptionsText>
      <HideCustomizeAssumptionText value="true" />
    </common>
  </vos>
  <borrowingPower>
    
    <InterestRate type="num" default="4.40" max="20" />
    <Assumption1 type="num" default="100" max="100" />
    <Assumption4 type="num" default="22" min="1" max="22" step="0.25" />
    <Assumption3 type="num" default="2.25" />
    
    <Assumption5 type="num" default="7.25" min="1" max="20" step="0.25" />
    <Assumption5Form label="Assessment Rate" />
    <Assumption4Form label="Credit Card Interest Rate Charged" />
  </borrowingPower>
  <components>
    <CustomCalculationEnabled value="true" />
  </components>
</calculator>

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