Comparison Rate Warning
Understand how comparison rates are calculated and how they apply to different loan amounts and terms.
What is a Comparison Rate?
A comparison rate is a calculation used to more accurately reflect the true interest rate of a loan by incorporating some of the fees and charges which come with it.
How Comparison Rates Are Calculated
Home Loans & Property-Secured Finance
For home loans and any other finance secured against real property, comparison rates are based on a secured credit of $150,000 and a term of 25 years.
Personal Loans & Car Loans
Personal loans and car loans comparison rates are calculated based on a secured credit of $30,000 and a term of 5 years (unless specified otherwise). The comparison rate is for secured loans only.
Important Considerations
Please Note:
The comparison rate provided is only applicable to the examples given and may not include all fees and costs which are charged as part of your specific loan agreement. Modifying the terms, fees or size of the loan could lead to a different comparison rate.
Need Help Understanding Loan Costs?
If you have any questions about comparison rates or would like help understanding the true cost of a loan, please don't hesitate to contact us.
Questions about this document? Email info@simpleloans.au.