Broker Tools
Total cost of loan
We calculate and present two values for the total cost of loan:
- Short term - after three years (A)
- Full term of loan, typically 30 years (B)
These values are presented in the Compare loan products tab in broker tools:
Total costs are calculated using the following formula:
Total cost = Once-off Fees + (Periodic Fees x #Periods) + Repayment 1 x Period 1 + Repayment 2 x Period 2 + Repayment 3 x Period 3 - Offset Benefit - Cashback
Where:
- Once off fees are upfront and settlement fees
- Periodic fees are monthly or annual fees
- Repayment and Periods are specified in product details section of the Compare loan products tab
- Offset Benefit is a result of client putting funds into an offset account and is described here
- Cashback is lender discount offer and is described here
Periods:
Fees:
In this example, total costs over the full term are:
= $1,048 + $3,136 x 36 + $3,155 X 324 - $0 - $0
= $1,136,164
Or:
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