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  • Anthony Fontana

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.

#comparisonrate #mortgages #interestrate #fees #surveys #education

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42/1 Macquarie Street

Parrmatta NSW 2150

 

P: (02) 9633 1670

F: (02) 9633 1701

 

 

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Disclaimer: Financial Solutions (ABN: 41 701 190 619) is a corporate authorised credit representative (Credit Representative Number 500747) of the Welfare Fund Ltd (Australia Credit Licence Number 423050 ABN: 25 155 698 105).  Frank Fontana is a Director of Financial Solutions and is a an authorised representative (Authorised Representative Number 1233081), of MASU Financial Management Pty Ltd (Australia Financial Services Licence Number 231140 ABN: 78 069 358 498). Financial Solutions is also a referral partner of TJL insurance Pty Ltd (Australia Financial Services Licence Number 478959 ABN: 98 613 453). 

Financial Solutions has access to a panel of lenders through National Mortgage Brokers Pty Ltd (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596).  Financial Solutions has access to products including those from Liberty Financial.

The information on this website is of a general nature to give an indication of insurance products, financial services and mortgage products. It should not be considered financial advice and does not take into account specific and individual circumstances. Appropriate professional advice should be sought from accountants, solicitors and financial advisers before obtaining a product that takes into consideration individual circumstances.

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