Some of your Questions:
Q.4. What is a Comparison Rate?
The aim of the Comparison Rate is to help you make a more informed decision on the costs associated with a loan and help you to compare various loans offered by mortgage providers. A Comparison Rate reflects some of the costs of a loan into a single interest rate.
The Consumer Credit Code regulates the formula for calculating a comparison rate, and all Australian financial institutions and mortgage providers use this same formula. It includes the interest rate, plus standard fees applicable to that loan. It avoids borrowers being misled by lenders advertising a lower interest rate but charging high fees to compensate for the low rate.
More Questions of yours:
- 1. What is LVR?
- 2. What is Lenders mortgage insurance (LMI)?
- 3. What is the difference between a fixed rate loan and a variable rate loan?
- 4. What is a Comparison Rate?
- 5. What is the difference between a ‘Principal and Interest’ repayment and an 'Interest-only' repayment on Home Loans?
- 6. What deposit do I need when taking out a loan?
- 7. What is a pre-approval or conditional approval?
- 8. How long does it take to get pre-approval?
- 9. How long does a pre-approval last?
- 10. What is stamp duty? How much do I have to pay?
- 11. How much can I borrow?
- 12. Can I pay out my home loan at any time?
- 13. Extra Repayment Part 1 - What is an offset account? How does an offset account work?
- 14. Extra Repayment Part 2 - What is redraw?
- 15. What is Equity?