Methodology

This page explains the main assumptions behind affordability guidance, calculator outputs, and comparison tables so users can understand the limits of the tool.

PreeLoan is built as a planning tool first. It combines practical lending assumptions used in Jamaica with standard repayment math to give users a realistic starting point before they request formal lender quotes.

Affordability Foundation

Affordability starts with gross monthly income, current debt obligations, expected living costs, and a minimum cash buffer. The model then applies loan-type debt-service assumptions, with extra caution for less stable income profiles.

Calculator Logic

Product calculators use amortization formulas for monthly payment and total interest. Auto-loan outputs also estimate depreciation and equity path, while mortgage outputs include closing-cost elements common in Jamaica such as stamp duty, registration, and legal fees.

Rate Band Construction

Comparison-table rates are indicative planning bands based on market conditions and lender spread patterns, not live institution APIs. The low end should be treated as a strong-profile scenario and never as a guaranteed offer.

Real-World Constraints

The model cannot observe your full credit file, employment verification, lender risk policy, or legal due-diligence issues. Outputs should be used for planning and negotiation prep, then validated against live quotes and complete documentation.

How to Use These Estimates Well

  • Stress-test at least one higher interest-rate scenario before committing.
  • Compare total cost and fees, not only monthly payment.
  • Verify all assumptions directly with your lender, broker, and attorney.
To apply this in a real scenario, start with the affordability plannerand then move into the specific calculator that matches your goal.