What's the comparison rate?
It’s a tool that can help you identify the truer cost of a loan. It’s calculated using a standard formula that includes the interest rate, as well as certain fees and charges relating to a loan (not all fees and charges are included).
Comparison rate warning:
Loans for a property to live in vs. loans for an investment purpose
Comparison rate is calculated on the statutory assumption of $150,000 loan over 25 years but the minimum required loan amount is $200,000 for the Complete Home Loan Package. Different rates apply for different loan amounts and may depend on the duration of a fixed rate period or the ratio of the loan amount to the property value. WARNING: This 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.
Loans for a property to live in - also known as owner-occupier loans – include (but aren’t limited to) loans to fund the purchase of a property or refinance an existing loan, where the borrower currently lives or intends to live in the property.
Loans for an investment purpose – also known as investor loans – include (but aren’t limited to) loans where the predominant part is used to invest in shares, land, construction or an established property. They also include refinancing an investor loan.
Other conditions apply.
- Application tracker not available on lines of credit. Other exclusions may apply
- If you decide to pay interest only, only monthly repayments are permitted.
- For owner occupiers the standard variable rate is the Mortgage Shredder Reference Rate. For investors the standard variable rate is the Investor Reference Rate.
- Different rates apply for interest only repayments. Contact your Home Lending Specialist or call us on 13 17 19 to find out more.
- Redraw is not available whilst an account is on a Fixed Rate. This feature will be available once the Fixed Rate term ends.
- Offset Transaction Account must be held in the same name as the loan account. Other exclusions apply. Maximum 40% offset is available with our Fixed Rate Home Loan. No offset fee applies during the fixed term although a $12 monthly loan maintenance fee applies. At the end of the fixed term, a $10 monthly offset fee per offset account applies. Monthly offset fee is charged to the offset account, not the home loan.