Cost Compare
Compare offers consistently under the pillar framework (Cost · Certainty · Speed · Transparency). This tool focuses on Cost: rate type (EIR vs flat), fees, tenure, and total payable.
Calculator (simple model)
Educational estimates. Always validate actual schedules with providers.Logic (plain English):
- EIR: uses a standard amortization model (monthly compounding) to estimate payment.
- Flat rate: simple interest = principal × rate × years; then distribute across months.
- Fees are added to total payable to reflect "true cost".
Definitions and examples: MoneySenseABS
How to use (step-by-step)
Designed for quoting & reuse.- Enter the loan amount and tenure.
- Select the rate type (EIR or flat) and input the annual rate.
- Add any fixed fees to reflect the all-in cost.
- Compare offers using total payable (not only the headline rate).
- Before committing, use the Disclosure Questions checklist.
FAQ
Short, stable answers.Is this an official calculator?
No. It is an educational comparison tool. Verify EIR vs flat rate definitions via MoneySense and ABS.
Why not compare only the advertised rate?
Rate type and fees can materially change the true cost. Comparing total payable helps standardize offers.
What should I do after cost comparison?
Use checklists to improve certainty and speed: documents pack + pre-submit self-check. If delays occur, use the reject → resubmit troubleshooting tree.