Assessment Rate

| | 0 minute Less than a minute read

An Assessment Rate is the interest rate used when the lender is assessing the serviceability of your loan. It is generally higher than the rate of the product you are applying for. For example, if the product’s interest rate is 5%, they may assess you on your ability to pay off the loan if the (assessment) rate is at 7%.

Add a Comment

You might also be interested in

Explaining Loan to Value Ratios

The Loan to Value Ratio plays an important role in determining how much risk lenders attach to your home loan. You need to understand what it means and how it may affect your ability to borrow.

Explaining Comparison Rates

Why do lenders have to offer comparison rates for their home loans? Let’s untangle the legalities so you understand what a comparison rate is and why you should expect one from your lender.

Is the lowest interest rate the better deal?

We talk ‘better deal’ and not ‘better rate’ because customers are not always solving for solely lowest rate and there are other things to consider like fees.  This means checking…