Our Product Manager, David Bryde, talks about the Home Loan Fact Sheet, the Government’s latest banking reform aimed at improving competition and helping consumers get a better deal.
With so many different loan choices available to consumers it can be difficult to line them up and know which provides the best value for you.
From January 1 2012 all lending institutions must provide a Home Loan Fact Sheet to prospective borrowers on request. The sheet will contain valuable information to help you compare loans from different providers.
All lenders will clearly list:
- the interest rate and the comparison interest rate
- the total amount you’ll pay back over the full loan term, including all fees
- the effect future interest rate changes may have on your repayments
- the effect making extra payments may have on your loan term.
The Greater welcomes this reform. Empowering consumers with information like this will help them identify the best deals available and show that you’re likely to find them outside the major banks.
The total interest paid over the full term of a loan may look a little daunting when you see it but by comparing that figure from one lender to another, consumers will be better equipped than ever before to make the loan choice that saves the most money in the long run.
Some little known issues, such as the revert rate rort I’ve previously blogged about, and the effect they have on the interest you pay will be out in the open for all to clearly see.
The Australian Government’s Banking Reforms website has more information here.