Comparison Rate Warning
Comparison rate is based on a loan of $150,000 principal over a 25 year term. WARNING: The Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.
What is a Comparison Rate?
A comparison rate is there to help borrowers understand the true cost of their home loan. It is calculated using an industry standard formula based on a loan amount of $150,000 over 25 years and takes into account fees and charges like setup costs (i.e.: application fees), ongoing fees and discharge fees.
What isn't included?
A comparison rate doesn't include fees and charges that might occur in the future, for example redraw, early termination fees or progress payments. Government fees and charges are also excluded as these fees are standard regardless of the type of loan you have.
While a Comparison Rate provides you with the true cost of a home loan, it doesn't take into account all the areas that should be considered when comparing different home loan products. Features and benefits such as redraw, 100% offset, or the ability to make additional repayments should be considered as well.