The new compulsory comparison rate (CCR) legislation came into effect July 1, 2003. The aim of the new legislation is to give prospective borrowers a single figure expressed as percentage rate to simplify the process of comparing one home loan to another.

How is the comparison rate calculated?



Confused? Don’t be.

In simple terms this formula factors in the interest rate, including any introductory rates, ascertainable lender fees, such as establishment fees, settlement fees and admin fees, the loan amount, term and repayment frequency to determine a single percentage figure.

The rationale behind the new CCR legislation is that many home loans hook prospective borrowers into a home loan which offers a low introductory rate, but have higher on-ongoing interest rate after the honeymoon period expires, as well as a raft of hidden fees and charges.

In other words the legislators want to give consumers a simple tool which can be used to compare one home to another, however many experts have reserved their judgement as to how effective the new comparison rate will be in achieving this aim.

In any case a key component of the new legislation is the requirement that all internet sites of mortgage brokers contain up to date Comparison Rate Schedules of their lenders and you will find these below.

If you would like a copy of the up to date comparison rate schedules for all lenders on our panel please email us at admin@amortgage.com.au

Our accredited Mortgage Consultants are up to date with all matters pertaining to the CCR legislation, so if you’d like to know more please contact us today

Paul Gollan
Director / CEO