Survey says Aussies need better understanding of “comparison rate”

Font size :

By Eleanore D. Sanchez

Most home buyers are not aware what a home loan “comparison rate” is, making them miss out on the best loans, a recent report said.

The National Mortgage Survey, commissioned by member-owned financial services provider CUA, found that 29% of Australians had low levels of financial literacy.

The government requires lenders to disclose the comparison rate so that prospective home buyers can shop around for the best deals by seeing what the actual cost of their loan will be, including additional fees, rather than just the interest rate percentage.

According to CUA chief operating officer for member services Andy Rigg, comparison rates help homebuyers choose the rate most suitable to their needs by giving them a glimpse of the computations of fees and charges behind the published loan rate.

Rigg emphasized that lenders are increasingly responsible for helping raise the level of financial literacy among the general public.

 “We have a duty to make sure borrowers understand the tools they have at their disposal to find a home loan that best suits their situation,” he said.

Despite historically low interest rates though, the survey suggests that 33% of non-mortgage holders do not think they can afford to buy property, while nearly 40% say they fear they will be priced out of the market because of the steady rise in property prices.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords