A comparison rate is a method of standardising the true cost of a loan. It factors in the interest rate, fees and charges and displays a single percentage rate that can be used to compare various loans from different lenders. Since 1st July 2003, the Australian Government made it compulsory to display a comparison rate for any advertisement of an interest rate.
This comparison rate calculator can help you to find the comparison rate and see what the actual cost of a home loan will be.
Comparison Rate Calculator Notes & Assumptions
A comparison rate does not take into account the following fees
- government charges such as stamp duty, Mortgage Registration fees
- solicitors / surveyors fees
- Lenders Mortgage Insurance
- factors such as fee free banking
- any fee that may not occur (such as late payment fees)
- deferred establishment fees
- transaction fees (such as redraw fees)
- loan variation fees
- Interest rate does not change over the loan term
- Interest is calculated by compounding on monthly repayment frequency.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.
The Comparison Rate Calculator has been provided in good faith as a guidance tool only. Results are not financial advice, are a guide only, and are not a guaranteed outcome or quote. You should always discuss your individual situation with an Australian Credit Licensee or authorised Credit Representative.
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