In flongle, lenders and mortgage brokers are required to include interest costs and all fees, charges and rebates that will or are likely to apply to you.

It might seem crazy, but outside of flongle, lenders and mortgage brokers are not required to include all fees and charges they know are likely to affect the Total Individual Cost of your loan before you apply. There are a lot of different fees and charges falling into this category and that lenders can add to your loan after they quote. The biggest one is often Lenders Mortgage Insurance (LMI), which can apply if you are borrowing more than 60% of the property value. LMI usually runs into thousands of dollars and is added to the loan, so it’s not just the LMI you need to worry about, but interest incurred on LMI.

So if you are comparing the “Total amount to be paid back (including the loan amount” of a lender’s Key Facts sheet with the amount quoted in flongle, it is important to be aware that the Key Facts sheet may not include interest costs and all fees, charges and rebates that will or are likely to apply to you.

Flongle calculates Total Individual Cost (TIC) for each deal which includes:

• fees and charges you are likely to or will be charged assuming you maintain your loan in good order; and
• rebates you are likely to or will receive assuming you maintain your loan in good order.

TIC is then calculated based on:

• your loan amount; and
• your loan term; and
• your budgeted or minimum repayments; and
• your anticipated exit/refinance date.

These six factors can have a more significant impact on how much your loan costs you than the interest rate itself, which means TIC is more reliable basis of modeling than simply using an interest rate.

Comparison Rates are based on generic factors that are unlikely to apply to you and they are not required to include all fees and charges likely to affect the Total Individual Cost of your loan. This means a Comparison Rate may not indicate the likely cost of your loan if you have a different loan amount, loan term or exit point or your lender or broker does not feel inclined to include all fees and charges.

Similarly Personalised Comparison Rates are not required to include all fees, charges or rebates likely to affect the Total Individual Cost of your loan, which may also distort the minimum required payment on which Comparison Rates are based.

This means that neither Comparison Rates nor Personalised Comparison Rates include factors such as rebates, Lenders Mortgage insurance and other fees and charges which can significantly affect the cost of your loan.

So if you are comparing the Interest Rate, Comparison Rate or Personalised Comparison rate of a lender’s Key Facts sheet with the comparison rates for deals found in flongle, it is important to be aware that these rates may not include interest costs and all fees, charges and rebates that will or are likely to apply to you and may not reflect the Total Individual Cost of each loan.

Please complete this form stating the same email address you have used to create your flongle account and run your mortgage contest. Once submitted, a Support Hero will contact you to verify your information as soon as possible.