Look beyond the interest rate
Two similar headline rates do not necessarily mean the same cost. Compare the same principal and term, the interest calculation method and all charges.
| What to compare | What to ask |
|---|---|
| Amount you receive | What reaches you after any upfront deductions? |
| Interest method | Is interest calculated on a reducing balance or the original principal? Is the rate monthly or annual? |
| Other charges | What application, insurance, valuation or other charges apply, and when are they payable? |
| Term and schedule | How much is due, how often, from what date, and what is the total repayment? |
| Your own budget | What remains after essentials and existing debt commitments? |
| Security and insurance | What assets or guarantor obligations are involved? What does any insurance cover? |
| Late or early repayment | What happens if you pay late, settle early or need to discuss a revised schedule? |
Make room for repayment
Use income you can reasonably rely on. Include household essentials, current debts and other commitments. Consider what you would do if income fell.
Use your quoted figures
The existing calculator uses reducing-balance interest and excludes additional charges.
Estimate repaymentsRead and keep the paperwork
Further reading
BNR’s consumer booklet explains clear financial information. BNR’s Gereranya provides a place to consult published pricing; check the provider, date and scope.
BNR consumer booklet (PDF) ↗Open BNR Gereranya ↗