Find the best home loan product – with key fact sheets
Announcement posted by Beyond Bank Australia 15 Feb 2012
As of 1 January 2012, the Australian Government requires all lenders (banks, credit unions and building societies) selling standard home loans to provide consumers with a Home Loan Key Facts Sheet (HLKFS) about their standard variable and fixed rate home loans, if they ask for one.
The HLKFS have to be presented in the same format and layout regardless of the lender, and are designed to enable consumers to easily compare home loans provided by different lenders.
The HLKFS are prepared based on consumers’ individual requirements for their loan amount, loan term and interest type (fixed or variable) and summarises information about the loan, including:
The interest rate (nominal and comparison rate i.e. including fees)
Total amount to be repaid (including loan amount and fees)
Amount repaid for every $1 borrowed
Establishment and ongoing fees
Repayments per month and per year
They also include information about how the consumer’s monthly repayments will change if interest rates increased by one per cent and how much sooner they would repay the loan if they increased their repayments by $200 per month.
Community CPS Australia’s Chief Financial Officer Wayne Matters said he was pleased to see initiatives implemented that help consumers find the best product for their personal circumstances.
“Because every lender uses a different language to describe its products and features it can be quite difficult for consumers to compare them directly to one another. The new HLKFS all look the same and use the same terms to outline the relevant information”, said Mr Matters.
“This will help people to compare apples with apples when it comes to home loan products, and they can assess the loans at face value and make an informed decision about which one best suits their needs.
“Buying a home is a big decision for most Australians, and they will spend a good time of their adult life paying it off – so it is very important to pick the right product. We feel the HLKFS are a great tool, empowering consumers in their choice of product without the bells and whistles
distracting from the actual basic features of the loan.
“So if you’re thinking about taking out a home loan, make sure you ask for a HLKFS from several lenders to enable you to shop around for the best deal. Financial institutions are also required to make the HLKFS available on their website if they provide information about home loans or enable home loan applications online. Ours can be found on http://www.communitycps.com.au/calculators/homeloankeyfactsheet.aspx “said Mr Matters.
ABOUT THE COMMUNITY CPS AUSTRALIA GROUP
Community CPS Australia is a two-time winner of Money Magazine’s Australian Credit Union of the Year
Award. With more than 185,000 members, Community CPS employs 585 staff across branches in South
Australia, the Australian Capital Territory and operates as Wagga Mutual Credit Union in Wagga Wagga,
Companion Credit Union in the Hunter Valley and United Community in Western Australia. Community
CPS is now one of the country’s leading credit unions with assets under management approaching
$4 billion. For more information visit www.communitycps.com.au
The HLKFS have to be presented in the same format and layout regardless of the lender, and are designed to enable consumers to easily compare home loans provided by different lenders.
The HLKFS are prepared based on consumers’ individual requirements for their loan amount, loan term and interest type (fixed or variable) and summarises information about the loan, including:
The interest rate (nominal and comparison rate i.e. including fees)
Total amount to be repaid (including loan amount and fees)
Amount repaid for every $1 borrowed
Establishment and ongoing fees
Repayments per month and per year
They also include information about how the consumer’s monthly repayments will change if interest rates increased by one per cent and how much sooner they would repay the loan if they increased their repayments by $200 per month.
Community CPS Australia’s Chief Financial Officer Wayne Matters said he was pleased to see initiatives implemented that help consumers find the best product for their personal circumstances.
“Because every lender uses a different language to describe its products and features it can be quite difficult for consumers to compare them directly to one another. The new HLKFS all look the same and use the same terms to outline the relevant information”, said Mr Matters.
“This will help people to compare apples with apples when it comes to home loan products, and they can assess the loans at face value and make an informed decision about which one best suits their needs.
“Buying a home is a big decision for most Australians, and they will spend a good time of their adult life paying it off – so it is very important to pick the right product. We feel the HLKFS are a great tool, empowering consumers in their choice of product without the bells and whistles
distracting from the actual basic features of the loan.
“So if you’re thinking about taking out a home loan, make sure you ask for a HLKFS from several lenders to enable you to shop around for the best deal. Financial institutions are also required to make the HLKFS available on their website if they provide information about home loans or enable home loan applications online. Ours can be found on http://www.communitycps.com.au/calculators/homeloankeyfactsheet.aspx “said Mr Matters.
ABOUT THE COMMUNITY CPS AUSTRALIA GROUP
Community CPS Australia is a two-time winner of Money Magazine’s Australian Credit Union of the Year
Award. With more than 185,000 members, Community CPS employs 585 staff across branches in South
Australia, the Australian Capital Territory and operates as Wagga Mutual Credit Union in Wagga Wagga,
Companion Credit Union in the Hunter Valley and United Community in Western Australia. Community
CPS is now one of the country’s leading credit unions with assets under management approaching
$4 billion. For more information visit www.communitycps.com.au