A comparison rate is designed to help you identify the true cost of a loan, by taking into consideration certain fees and charges as well as the interest rate. By considering all these factors you can better understand the overall cost, which is helpful when comparing loans offered by different financial institutions.
Generally the interest cost of your home loan is calculated daily on the outstanding balance of your loan.
An example of how daily interest is calculated on a $400,000 loan with a fixed rate of 4% p.a. is as follows:
($400,000 x 4%) / 365 = $43.83
Some loans will allow you to directly deposit extra money into your loan or offset account to reduce your interest payments. To determine the repayments on your loan, see the home loan repayment calculator.
A property valuation report is completed by a licensed property valuer. They will determine the value of a property through the use of data based on location, amenities, structural condition and recent sales of similar local properties.
Have a home loan with MOVE Bank? Building insurance is required to be taken out and note “Railways Credit Union Limited trading as MOVE Bank” as an interested party on the Certificate of Currency with your Insurance Company.
Don’t have insurance with MOVE Bank? We have partnered with CGU Insurance to provide you with competitive insurance. Get a quote today!