FAQs

Lenders decide their own interest rates based on their costs of sourcing funding and other factors. This results in variations across the lending market.

Online finance calculators can be used to compare repayments based on different interest rates.

Online loan calculators are available to work out repayment estimates for different interest rates to make basic comparisons.

Calculators do not account for the credit profile of users or the fees charged by lenders. Lenders will offer different rates to applicants with different credit scores. The rate offered can vary from the estimate obtained with a finance calculator.

A variable interest rate is a rate that can change when the lender changes their rate for that credit product.

No. The cash rate is an overnight borrowing rate for lenders, not a consumer credit interest rate.

Business entities are typically perceived by lenders as lower risk borrowers and lower rates are applied to business compared with consumer loans.

The Comparison Rate applies to consumer loans and is the rate for a specific loan example when some lender fees have been included.

The amount borrowed may be assessed by lenders in terms of risk. If the creditworthiness of the applicant to repay that amount is assessed as higher risk, a higher rate may be offered.

When loan quotes are requested, lenders report the requests to Credit Reporting Agencies. Multiple requests for the same loan can be viewed negatively when credit profiles are reviewed by lenders. This can impact the credit profile.