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Taylor

1 year ago

Hi Miriam,The comparison rate is factoring all the fee and charges over the term of the loan. As a borrower, you do have to consider comparison rate. However, as nowadays, most of the borrowers changes lenders after 5-7 years, some of the fee and charges will never really apply to the borrowers. As a result, a borrower should not just focusing on the comparison rate ( or just rate). Instead ensure the repayment and loan term are most suitable for your objective is most important matter when it comes to loan choice.Eg. a comparison rate 4.30% with 30 years loan term, it includes 30 years annual fee and charges. If a borrower refinanced to another lender, who charges lower or no annual fee, after 5 years of the loan setup. He/she will never have to pay for annual fee for the next 25 for years. Hence, comparison rate 4.30 % will not be accurately reflected what he/she is paying for.Hope this explanation helps you understand the important matter when it comes to choose a loan.

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kelvin

1 year ago

Hi Mirian - No - all brokers can provide a comparison of the most suitable and lowest cost loans, based own your personal finances.

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Amit

1 year ago

Hi MiriamComparison rate includes all other fees and charges payable to lender and this is based on $150,000 for 25years loan term. $150,000 loan amount is much smaller than the average home loan size in Australia. So, Comparison rate should be only used when loan amount and loan term is close to $150K and 25 years respectively, otherwise comparison rate may be misleading. Higher the loan amount, more misleading it is.Please feel free to call me on 04**** 809 if you have any question

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Jerry

1 year ago

Hi Miriam, The comparison rate is also known as the true rate. The rate includes all fee's and charges associated with the loan over the loan term. While it is important to take this into account, there may be circumstances where it is not so relevant i.e. when you take a long term fixed rate. We would be happy to discuss your personal situation so feel free to give us a call on 1300****63.Regards, Jerry.

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Brendan

1 year ago

Hi Miriam. A comparison rate is essentially a single rate disclosed by the bank that includes both the interest rate and fees/ charges associated with a loan. It is an important figure to consider when assessing a loan.

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Jeremy

1 year ago

A comparison rate, is the delivery rate to the client - which includes all regular on-going fees and charges (typically monthly, annual, account fees) Generally the comparison rate is based on $150,000 lend over 25 years. It helps the consumer compare apples with apples. Pay attention to the comparison rate, when reviewed fixed contracts, as lenders will dangle a 3 year fixed special rate, though the revert rate (the rate of interest after the fixed contract) may be substantially higher. Which can have a huge impact on the comparison rate. Thanks Jeremy

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Jason

1 year ago

Hi Miriam,The comparison rate adds all the expected banks fees/costs to a loan amount of $150,000 and gives the equivalent rate for a loan with those fees over 25 years.It is important because a high comparison rate means there are a lot of fees. You do have to take it with a grain of salt though because the fees are typically fixed and while fees can be a significant % for a small loan (like $150,000), on large loans they start to make very little difference and it is the actual rate that is more important.

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