Queenslanders Credit Union


Comparison Rates explained

A comparison rate provides an indicative interest rate that takes into account certain costs associated with setting up and conducting a loan.

This rate includes the nominal interest rate/s, any loan approval and other up front fees and known ongoing fees.

Government charges are excluded, as are fees and charges which may or may not be charged because they depend on an event which may or may not occur (e.g. fees for early repayment or redraw fees) and fees and charges which are not known at the time the comparison rate is provided.

Why was the Comparison Rate introduced?
From 1 July 2023 uniform credit code legislation required a comparison rate to be included when advertising interest rates for all regulated lending. The comparison rate must be included in advertising where an interest rate is displayed, and must be available for all products upon request by members.

What is a Comparison Rate Schedule?
A Comparison Rate Schedule is a list of comparison rates for a range of standard loan amounts and terms for a particular loan product.

The standard amounts and terms have been set in legislation and a comparison rate must be provided for all of the listed amounts that are generally available for that loan product.

As they use the same loan amounts and terms, comparison rate schedules can be used to compare the comparison rates of different loan products.

Comparison rate schedules are available at our branches, as well as on our website. A relevant comparison rate schedule must also accompany any loan application that is sent or given to you by Queenslanders.

How should I use Comparison Rates and Schedules?
A comparison rate is useful for comparing the cost of different loans but it is also important to remember that the amounts and terms shown on a comparison rate schedule do not represent all the possible combinations of amounts and terms. This means that 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 that applies to your loan look at the comparison rate for the amount and term closest to that of your loan.

Remember that the comparison rate does not include government fees and charges or fees and charges that are only charged in certain circumstances. Therefore the comparison rate may not provide a complete picture of the total cost of a loan.

It is important to consider all of a loan’s features and not just focus on the comparison rate. A comparison rate does not take into account features that may make a loan more attractive such as flexible repayment options. You should give consideration to whether these features are important to you and the effect they will have on the cost of the loan.

Comparison Rate Schedule