It’s easy to take a ‘set and forget’ approach to financial affairs but a few hundred dollars and one hour’s investment will save me over $8,000 over five years! The Flongle mechanic is simple and easy to use. It takes the foot work and the guess work out of choosing a lender.”Lisa
Total Individual Cost – Apple with apple cost comparison
Rather than focus solely on just the rate, fees, discounts, or rebates, which can hide both savings and cost, flongle calculates the Total Individual Cost (Total Cost or TIC) based on your scenario. Whether comparing new loan to new loan or new loan to old loan we use the same options, numbers and methods to deliver a like with like comparison and help you understand the cost of your decisions.
In these examples the Total 5 Year Cost, savings or 5 Year Cost Difference (which is the difference between to Total Cost of one deal over another) are modelled on the same budgeted monthly repayment for all comparisons, based on the same loan term, same repayment basis and considering current interest rates, charges and concessions including rebates and discounts and assuming the borrower exits the loan after 5 years (through a refinance or by paying lump sum repayment).
It is inevitable that interest rates and some charges are likely to change over time and this will affect the actual outcome.
This case study has been used with our customer’s consent, however actors and replacement names have been used to respect our customer’s privacy.
Lisa is a Marketing Executive who bought her first apartment four years ago. Her current loan was arranged through a broker (loyal to her bank). Lisa thought she had a great deal for her smaller homeloan. However, Flongle’s mortgage contest revealed Lisa can save up to $8,620 in the next 5 years. Learn how this is calculated.
Lisa received 68 deals creating real savings opportunity by offering different combinations of:
- A lower interest rate
- Lower ongoing fees
- Higher rebates and/or discounts
The Old Loan
Source: Mortgage Broker
Standard Variable Rate Discount: 0.9%
Total 5 Year Cost: $ 68,877
Loan Features: Premium with 100% Offset Account
Comparison Key Facts
Base Loan: $304,000
Same Rate Type (Variable)
Same Repayment Type (Principal & Interest)
Same Budgeted/Monthly Repayment
Same Loan Features
Savings: Up to $8,620 in 5 years. Learn more.
Mortgage Contest Results
Total 5 Year Cost: $ 60,257
5 Year Cost Difference: $ 8,620
Features: Premium Loan with 100% Offset Account
Bids Received: 82
Bids with lower cost than old loan: 68