Comparison Rate Legislation became effective on 1 July 2003.
A Comparison Rate is an effective interest rate for any home or personal loan product, excluding continuing lines of credit. It incorporates the annual percentage rate and any ascertainable fees; Example, application, valuation, solicitors, monthly or annual fees; Government and contingent (redraw etc) fees are excluded.
The legislation has been introduced so that consumers can fairly assess competitor interest rates.
