2 in 3 Aussies don’t understand comparison rate
A Survey conducted by The National Mortgage Survey, commissioned by member-owned financial services provider CUA, actually found fewer than 1/3 Australians (29%) understood the term "comparison rate" and what it entailed. Further to this 33% of non-mortgage holders did not think they could ever afford to buy a property, and a further 39 per cent of respondents feared they would be priced out of the market unless property prices stay the same or decease.
These are scary figures, because we want to help educate our customers and the wider community to boost confidence when approaching obtaining a mortgage. A comparison rate is simply the term used for a method of standardising the true cost of a loan. It evidently gives a clearer indication of the true cost of the loan as it not only includes the annual percentage rate, but also the fees you will be charged.
The variable rate or fixed rate is not always the true cost of the loan over the long term, that's why the comparison rate is useful to know when comparing one loan from another. We can help with all of this and allow you to have a handful of loans from over 20+ banks with 600 products. Checking all the fee's included in the loan is vital when selecting a loan that's right for you so we can do the shopping for you before you select which product you are most content with.
For more questions call our office on 9633 1670 or simply leave us a comment.