Introducing Comparison Rates
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From 1 July 2003, amendments to the Consumer Credit Code require lenders to provide Comparison Rates to make it easier for the consumer to compare one home loan, personal loan or car loan with another. A Comparison Rate takes into account the costs of setting up a loan including the interest rate, the loan establishment fee and any other upfront or ongoing fees that are definitely payable under the loan contract terms, over the life of a "model loan". This makes it easier for a customer to compare the true cost of different loans. |
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Although a Comparison Rate can be a useful tool for comparing the true cost of different loans, it is also important to consider a loan's features, which may make it more or less attractive. For example, a linked 100% interest offset account and the ability to make unlimited additional payments can also help reduce the cost of a loan over time. Lenders will also have to make Comparison Rate Schedules available in relation to their home loan, personal loan and car loan products. The schedules will set out the Comparison Rates for a range of model home loan, personal loan and car loan product amounts and terms. To view or print a Comparison Rate Schedule, please select the required schedule from the menu above, or you can ask for a Comparison Rate Schedule at any St.George branch where the schedules will be on display. Alternatively, if you would like to calculate a Comparison Rate for a specific home, personal or car loan amount and term, or to compare with another Comparison Rate, please go to the Comparison Rate Calculator. For further information on Comparison Rates, please refer to our Questions & Answers section. An example of a Comparison Rate calculation is shown below:
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