Home Loans

Compare Rates

Comparison Rate Schedules

If you've ever tried to compare home loans before to find out which one is actually cheapest, you were probably confused when trying to work out how all the fees and charges fit in to the big home loan picture. In order to make the process of comparing loans simpler, as of July 1, lenders are required to advertise the Comparison Rate for all home loan products.

What is the comparison rate?

The Comparison Rate is a percentage rate detailing the total cost of the loan per annum over the life of the loan, and takes into account interest, fees and charges. Therefore a single per annum rate is produced which allows consumers to more easily compare the cost of one product against others.

What costs does the comparison rate include?

Types of fees that may be included in the Comparison Rate depend on the product on offer, but may include loan approval fees, security valuation fees, settlement and security documentation fees, annual valuation and review fees, and any on-going loan administration fees (typically paid monthly, quarterly, or annually). The Comparison Rate also takes into account any special deals like ‘Honeymoon' or ‘Introductory' Rates.

What does it exclude?

  • Government and statutory fees
  • Mortgage insurance or valuation fees if they are uncertain
  • Fees and charges that are events-based and may or may not apply throughout the loan eg. Redraw fees or early repayment fees.

It is important to note that selecting the right home loan for you doesn't always come down to cost, you need to consider other loan features such as redraw, direct debit facilities, loan portability and flexibility of repayment options. Your Ray White Financial Services Lending Manager can assist you to select the complete home loan package that works for you.

 

Download any one of our lender comparison rate schedules: