How does this calculator work?
There are so many different interest rates being advertised that it can be very confusing. Which deal is now actually the best?
Implemented legislation tries to provide clarity with the ‘Comparison Rate’, which now needs to accompany any advertised rate.
This is a great initiative, however, it has one major flaw; it uses a $150,000 loan amount and a loan term of 25 years.
Let’s be honest, that loan amount is not very realistic, in particular not for new borrowers because what can one buy for $150,000?
So the Comparison Rate therefore still does not provide a realistic rate to compare other loans against.
This calculator is the solution. With this calculator you are able to calculate the ‘True Comparison Rate’ by filling out the actual information of the loan.
Whats next?
Get in touch and discuss your True Comparison Rate with us.
You can email your results to yourself and in you request, a copy of your results and contact information is sent to The Finance Alliance.
You can also print your results for future reference.
