Comparison Rate

When choosing a loan, there is a wide variety of different factors that should be considered to ensure you choose the right loan for you. You need to consider other costs such as ongoing fees, and any up-front charges which will all add to the cost of your loan over the loan term.

These costs can vary between lenders and loans.

What is the comparison rate?

While the comparison rate helps you to compare one loan against another on a cost basis, it's also important to consider the features of a loan such as redraw and direct debit facilities, loan portability and repayment options that increase the flexibility of your loan. These features can make a huge difference to the overall cost of a loan.

It is mandatory for lenders to provide a Comparison Rate when advertising interest rates for all lending that is predominately for private purposes, with the exception of Continuing Credit facilities. The loan amounts and terms displayed in the various lenders’ Schedules are examples that are determined by law and will be consistent for all lenders providing similar products. The Schedule will be provided to you at time of application.

The schedules are not, in themselves, offers of finance at the rates or terms shown and each application is judged on the credit and security criteria standards of the Lender/s approached by BFG Group on behalf of our clients.

The comparison rate includes?

• Nominal interest rate
• Loan approval and any other up-front fees
• Known ongoing fees

• Government and statutory fees - as these are standard regardless of lender or loan type.
• Insurance products like comprehensive car insurance premiums.
• Any fees and charges that are event based and may or may not apply throughout the life of your loan.

• The amount borrowed
• The term of the loan
• The frequency of repayments
• The interest rate
• Ascertainable fees and charges connected with the loan except for government charges