Mandatory comparison rate legislation has been in operation since 1 July 2003. The legislation only applies to loans regulated by the Uniform Consumer Credit Code.

What is a comparison rate?

A comparison rate is a tool to help our members identify the true cost of a loan.

It is the rate which includes both the interest rate and fees and charges relating to a loan, reduced to a single percentage figure. For example, SERVICE ONE Members Banking's advertised interest rate may be 8.50% pa and its comparison rate 8.63% pa.

Points to remember about comparison rates

1. A comparison rate can be a useful tool for comparing the cost of different loans, but it is important to consider all of a loan's features and not just focus on the comparison rate. Remember that the comparison rate does not include government fees and charges or fees and charges which will only be charged in certain circumstances. Therefore the comparison rate may not provide a complete picture of the total cost of the loan. A comparison rate also does not take into account some factors which may make a loan more attractive, such as fee free banking, or flexible repayment arrangements. You should give careful consideration to whether these features are important to you and the effect they will have on the cost of the loan.
2. The amounts and terms shown on a comparison rate schedule do not represent all the possible combinations of amounts and terms. This means the amount and term of your particular loan may not be included in the comparison rate schedule. In order to get an idea of the comparison rate which applies to your loan, look at the comparison rate for the amount and term closest to the amount and term of your loan. Credit providers, finance brokers and suppliers linked to credit providers are not required to provide you with a comparison rate for your particular loan amount and term, but some may be willing to do so if you ask them.
3. Credit advertisements and comparison rate schedules may sometimes state whether a comparison rate is based on a secured loan (that is, a loan for which the credit provider takes a mortgage over property) or an unsecured loan (where no mortgage is taken). This is because there can be a significant difference in the comparison rate for a secured loan and an unsecured loan of the same value, due to the higher interest rates usually charged for unsecured loans and the higher up-front fees for secured loans. If a comparison rate is based on a secured loan, it is unlikely to be accurate for an unsecured loan of the same value, and vice versa.

Comparison rate schedule

View our comparison rate schedule

Please note: Fees and charges apply. Terms and conditions are available on application.

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