Comparison rate calculated on a $150,000 secured loan 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 loan amounts might result in a different comparison rate. Comparison rates for variable Interest Only loans are based on an initial 5 year Interest Only period. Comparison rates for fixed or guaranteed Interest Only loans are based on an initial Interest Only period equal in length to the fixed or guaranteed period. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
- A tool to help customers identify the true cost of a loan. It is calculated using a standard formula.
- It is a rate which includes the interest rate and certain fees and charges relating to a loan.
- Government charges such as stamp duty or mortgage registration fees
- Fees and charges associated with loan options or events that may or may not be used by the borrower, such as early repayment or redraw fees
- Fees and charges which aren’t available at the time the comparison rate is provided
- Cost savings such as fee waivers or the availability of interest offset arrangements which can influence the cost of a loan.