A comparison rate includes both the loan interest rate and any associated fees combined into a single percentage so there is complete transparency in the total cost to you.
A comparison rate is calculated in terms of industry regulations and determined by the following:
- A loan amount of $150,000
- A loan term of 25 years
- The repayment frequency
- The interest rate, including known changes to the interest rate such as introductory rates, interest-only periods and loyalty bonuses
- The fees and charges connected with the loan such as establishment fees, annual package fees, monthly fees, valuation/documentation/settlement fees
When comparing any finance offers you need to know all the fees and charges you are currently paying or will be charged. If an offer has the same advertised rate and comparison rate then you know that there are no hidden fees or charges.
Joust removes confusion for customers by only allowing its panel of lenders to submit a bid if their comparison interest rate is lower than the previous best comparison interest rate bid.
That means that all lenders are bidding on the same “best comparison interest rate” basis. This feature is what makes Joust truly revolutionary and unique as you don’t need to seek any independent advice to determine which is the best interest rate bid.
Would you like to learn more about how you can find the best home loan interest rates? If so, download our free eBook “19 Secrets to Finding the Best Home Loan Rate“.