How Do The Clients Calculate Comparison Rate?

If you are an expert mortgage broker, it is essential to understand how to calculate comparison rates for your clients. You can easily calculate a client’s comparison rate by adding together all of a home loan’s fees, interest rates, and charges, then converting your result into a percentage. The purpose of converting your client’s comparison rate into a percentage is to show them the actual cost of their home loan. 

A comparison rate is capable of assisting clients with comparing the various home loans and rates that multiple Australian lenders are currently offering, as well as discovering the true total cost of their home loan. Comparison rates consist of various home loan elements, including the various fees, charges, and interest rates a loan is made of. 

It is highly recommended among mortgage experts for potential homeowners to review and compare multiple lenders and their home loan offerings prior to making a decision on which option they would like to apply for. This process can allow potential borrowers to ensure they are receiving the interest rates and loan terms that match their current financial status best. 

Calculating your client’s comparison rates is essential in allowing them to verify they are proceeding with a mortgage agreement that best suits their financial needs and can allow a client to obtain a better understanding of the home loan’s total cost when compared to the mortgage interest rate. 

If you are an existing homeowner and client who is interested in obtaining a recalculation of their home loan’s comparison rate, we highly recommend reaching out to your current lender to schedule a mortgage rate review.