Comparison rate

* Comparison rate warning

Comparison Rate calculated on a $150,000 secured finance over a 25-year term.

WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other finance amounts might result in a different comparison rate.

What is a Comparison rate?

A comparison rate is a tool to help consumers identify the true cost of a finance. It is a rate that includes both the profit/rental rate and fees and charges relating to a finance.

How is the Comparison rate calculated?

The comparison rate is calculated using a formula that takes into account the following items:

  1. The Finance amount
  2. Term of the finance
  3. Payment frequency
  4. Profit/rental rate
  5. Known fees and charges such as application fees, valuation fees, mortgage documentation fees and settlement fees.

These charges need to be taken into account when calculating the comparison rate, as they do affect the overall cost of the finance.

The Comparison rate does not include the following items:

  1. Government charges, such as stamp duty and mortgage registration fees
  2. Conveyancing fees
  3. Redraw fees
  4. Break costs or early termination fees