27/06/2024
Loan Talk! 🏠
Confused by interest rate and comparison rate? 😕 Let's keep it simple..
Interest Rates:
- Shows the percentage of interest on a loan.
- Focuses on borrowing cost, excluding extra fees.
- Typically lower than the comparison rate.
- Advertised as the headline rate.
- Gives a basic idea of interest but may not show the full cost.
Comparison Rates:
- Includes interest and associated fees.
- Shows the total cost of the loan.
- Usually higher due to added fees.
- Helps you compare different loans accurately.
Covers various fees (doesn’t include fees e like stamp duty).
Guides well-informed decisions about long-term financial implications.
I get it - learning key money terms isn't fun. But I promise understanding the difference between the 2 rates is an important part in your lender decisionI'm by your side to decode tricky jargon! Ask me anything 🙋♀️
📞 Contact me at: 0414 742 711