Online mortgage calculators can be a valuable tool for first time buyers by helping them compare and contrast their home loan and repayment options. The maths behind mortgages can be confusing and daunting. After all, unless you're in the finance industry or are a whiz with numbers, it might be difficult to calculate, use and comprehend the computations needed to independently assess how taking out a home loan is going to effect your financial situation.

Mortgage calculators are relatively simple and straight forward to use. All the work has been done for you and you don't have to worry about how the calculations are done - you only have to worry about what the results tell you.

Using them is pretty straight forward. You simply input some key variables like:

• Interest rate
• Loan term - usually in months
• Loan amount

The results are provided in seconds in easy to use and understand format. The output is usually printable (so you have a copy) and can be e-mailed (if you want to share them with others like your partner or friend).

Every perspective first home buyer should familiarise themselves with the key mortgage calculators because they provide valuable information that enables you to assess your financial options. They are very useful in helping manage your personal finances including looking at options or ‘what if?' scenarios. They can help answer key questions like:

How much can I borrow?
How much would I have to repay each month?
How much interest will I pay over the life of my loan?
How much of my monthly repayment goes towards paying off interest and how much goes to paying off my loan balance?
How much time and money could I save by making extra or more regular repayments?
How much time and money would I save if I paid off lump sum amounts?
Which loan is the cheapest?
Which loan has the lowest comparison rate?

Mortgage calculators can be applied to your individual needs and circumstances. You can use them to decide on things like borrowing less or more, or paying off less or more, depending on your individual income levels and family situation.

Importantly, they can also be used to test any recommendations or assertions put to you by sales staff. You can check on the accuracy of what they're telling you and they will help you decide home loan may best suit your needs, at least from a financial perspective.

But it's also important to remember that mortgage calculators should not be used on their own, to make your final decision, unless you're absolutely sure you know what you want, you understand the terms and obligations of your chosen home loan and you fully understand the fee and cost structure of the home loan you're considering.

It makes sense to speak with a home loan expert, be they from a bank or other lender, or from an accredited mortgage broker, to ensure all the terms and conditions of the home loan is explained to you and that you understand them, and that you have selected the home loan that best suits your financial and lifestyle needs. You can use the mortgage calculators to in part, help confirm or otherwise the advice you're being given.