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Comparison rates want apples to be oranges

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Australian Broker | 29 Jun 2012, 01:30 AM Agree 0
ASIC has been quick to warn lenders on their comparison rates, but as Insider and brokers argue, the rates are fraught with problems
  • phil.gt3 | 29 Jun 2012, 11:43 AM Agree 0
    Can somebody please explain in PLAIN English the relevance of Comparison Rates when we are told recently that the average loan size for Qld is around $350,000 and lenders tell us loans on average have a life of about 4 years! So given those figures, what correlation can be drawn with a Comparison Rate based on a loan for $150k over 25 years! What am I missing? I would rather ASIC clamp down on brokers and lending staff that write loans without disclosing on-going financial commitment! Yes, I walked from a deal recently where the buyer did not want to disclose all; surely there are plenty of other more important matters to pursue than C.R.s!
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