Frequently
Asked Questions What
is a comparison rate?
Is a rate required by law which allows you to compare the likely
cost of similar types of consumer credit products supplied by different credit
providers. The rate calculation takes into account certain fees & charges levied
by the credit providers. Why
is there a warning when the comparison rate is stated?
Section
12(10) of the law requires us to include the prescribed warning: "Warning: This
comparison rate applies only to the example or examples given. Different amounts
& terms will result in different comparison rates. Costs such as redraw fees or
early repayment fees & cost savings such as fee waivers are not included in the
comparison rate but may influence the cost of the loan" | The
comparison rate calculation does not take into account your financial circumstances
& it is only when an application for credit is received & assessed by the credit
provider can the contract interest rate be determined. |
Oz Credit
Private Motor Vehicle Loans.
The Comparison Rate Schedule for Oz Credit
Private Motor Vehicle Loans includes in the standard list a loan of $30,000 over
5 years, which is similar to a typical car loan. Oz Credit
Personal Loans
The Comparison Rate Schedule for Oz Credit
Personal Loans will be calculated on a typical 'model loan' based on borrowing
$10,000 over 3 years. | 