Crs calculator new zealand

The CRS (Credit Related Security) calculator is a tool used to calculate the credit-related security requirements for a loan in New Zealand. Here's a step-by-step guide to using the CRS calculator:

What is the CRS calculator?

The CRS calculator is a tool provided by the Reserve Bank of New Zealand (RBNZ) to help lenders calculate the credit-related security requirements for a loan. The calculator takes into account the loan amount, loan term, interest rate, and other factors to determine the required credit-related security.

How to use the CRS calculator:

  1. Gather the necessary information: You'll need the following details to use the calculator:
    • Loan amount (in NZD)
    • Loan term (in years)
    • Interest rate (as a decimal, e.g., 5.5% = 0.055)
    • Loan-to-value ratio (LVR) (as a decimal, e.g., 80% = 0.8)
  2. Access the CRS calculator: You can access the calculator on the RBNZ website or through a lender's website.
  3. Enter the required information: Enter the loan amount, loan term, interest rate, and LVR into the calculator.
  4. Calculate the CRS: The calculator will calculate the credit-related security requirements based on the inputs.
  5. Review the results: The calculator will provide the required credit-related security as a percentage of the loan amount.

Example:

Let's say you're a lender considering a loan of NZD $200,000 with a 5-year term, an interest rate of 5.5%, and an LVR of 80%.

  1. Enter the loan amount: NZD $200,000
  2. Enter the loan term: 5 years
  3. Enter the interest rate: 0.055
  4. Enter the LVR: 0.8
  5. Calculate the CRS: The calculator will provide the required credit-related security as a percentage of the loan amount, e.g., 15%.

In this example, the required credit-related security would be 15% of the loan amount, which is NZD $30,000.

Important notes: