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interest rate comparison

The interesting thing about interest rate comparison…

The interesting thing about interest rate comparisons is there’s more to it than just plain percentages.


Take a cheap interest rate with a large fee – for example.

Lenders are savvy – they have huge marketing teams looking for whats just the offer to grab you – everyone wants a low interest rate – but the fee counts too, and more so if you have a smaller loan.

In the example below I show you how a typical annual fee adds 0.26% pa to the interest rate of a small loan – not so attractive now hey?

interest rate comparison


What about features like an offset account?

Having an offset account with a $15,000 balance vs earning 2% in  a savings account (before tax) on the same balance with a $400,000 loan reflects a rough saving of 0.10% pa – before any tax consideration!

Investors take note: this structure is particularly good for you!

comparing the interest rate saving


What about other features that are harder to measure? Redraw fees? Upfront costs?

There’s so much more that a robotic online comparison cannot consider. And if you’re doing it yourself it could be you miss these details or you just aren’t aware of what it could mean for you. Just like you could cut your own hair – but you know the hairdresser will do it better for you.

Seek the advice of a professional.

Theres much much more a mortgage broker considers when comparing interest rates than just the rate itself!


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