What is a comparison rate schedule?
A comparison rate schedule details the various rates that apply to the lenders products at various loan amounts and various loan terms.
What is the comparison rate?
The comparison rate is an indicative interest rate that combines the nominal interest rate with any foreseeable fees and charges associated with the loan, to help you obtain a more comprehensive picture of what you loan is going to cost you over the life of the loan
What costs does the comparison rate include?
Nominal interest rate
Loan approval and any other up-front fees
Known ongoing fees
What does it exclude?
Government and statutory fees - as these are standard regardless of lender of loan type
Mortgage insurance or valuation charges if they are uncertain
Fees and charges that are event based and may or may not apply throughout the life of your loan, e.g. redraw fees or early repayment fees.
How is the comparison rate calculated?
The comparison rate is calculated in accordance with a standard formula specified by the regulations, which takes into account;
The amount of the loan
The term of the loan
The repayment frequency
The interest rate
Ascertainable fees and charges connected with the loan except for government charges.
Click here to view Century Lending's comparison rate schedule.
Find out how easy it can be to have your loan approved.
Call Century Lending on 1800 33 12 33 or click on the contact us page.