Rates
Interest rates for loans, credit cards and savings accounts.
- Interest rates [PDF]
- Comparison rates for home loans [PDF]
- Comparison rates for personal loans [PDF]
What is a comparison interest rate?
Mandatory comparison rate legislation took effect on 1 July 2003 and essentially requires all lenders to include a comparison rate, in addition to other prescribed information, when advertising an interest rate.
A comparison rate is a tool designed to help consumers identify the “true” cost of a loan.
It is a rate that includes the annual interest rate and specific up-front and ongoing fees and charges relating to the loan, expressed as a single percentage figure. For example, an advertisement displaying an interest rate of 5.49% per annum may have an actual comparison rate of 6.75% per annum.
Compare with caution
Whilst comparison rates can be a useful tool for comparing the cost of different loans, it is important to recognise that they do have some shortcomings. Specifically, many add-on features which can be enormously beneficial are not taken into account in the calculation of the comparison rate.
When choosing a loan, it is important to consider and research each loan’s features . As an example, all of CUA’s award winning home loans offer members the ability to make additional and lump sum repayments without penalty, 100% mortgage offset facility, free redraws and many other features which differentiate them from those of our competitors.
These features are not reflected in our comparison rates.
