The Comparison Rate discloses a rate for regulated loans (except Line of Credit) that includes the nominal interest rate plus initial establishment and on-going fees.

From the 1st of July, 2003, it has become mandatory for lenders to supply a Comparison Rate in all advertising where interest rates are displayed and also make available Comparison Rate Schedules(s).

The Comparison Rate legislation is for new loans only and does not affect further advances. Neither is it applicable to unregulated loans.

The Comparison Rate takes into consideration:

• the borrowers interest rate
• loan establishment/application fee plus any other up-front fees charged to the borrower, (eg: legal and / or valuation costs)
• as well as any on-going (eg: monthly or annual) fees.

The Comparison Rate excluded:

• all Government and statutory fees, as these are standard
• any fees that are "event based" such as DAF (only payable if the loan is discharged within 4 years)
• dishonor fees are also excluded.