Comparison rate

All lenders must disclose a benchmark comparison rate in their advertising of home loans and personal loans since July 2003. This Comparison Rate is designed to reflect the total annual cost to a borrower of a loan. It wraps up interest payments and fees and expresses all these costs in one rate, or the average annual percentage rate (AAPR). On the Infochoice website, to make comparisons between products easier, the comparison rates displayed in tables are based on uniform amounts and terms:

Home loan Comparison Rates are based on a loan amount of $150,000 and a term of 25 years.

Personal loan Comparison Rates vary depending on the rate type and term:
Variable – Comparison rates based on $30,000 over 5 years
1 Yr Fixed – Comparison rates based on $1,500 over 1 year
2 Yrs Fixed – Comparison rates based on $5,000 over 2 years
3 Yrs Fixed – Comparison rates based on $10,000 over 3 years
4 Yrs Fixed – Comparison rates based on $20,000 over 4 years
5 Yrs Fixed – Comparison rates based on $30,000 over 5 years
6 Yrs Fixed – Comparison rates based on $40,000 over 6 years
7 Yrs Fixed – Comparison rates based on $50,000 over 7 years

Full comparison rate schedules giving rates based on a variety of amounts and terms are available from the lenders.