I’ve seen AAPR% in a few financing comparison tables… but just what exactly is it? Unabbreviated it means “Annualised Average Percentage Rate” but I still don’t have a clue what it is!
Also… lenders such as Westpac list something called a “Comparison Rate” – is this something similar?
I know the answer now…
see:
http://ni2.infochoice.com.au/banking/learn/glossary/homeloans/default.asp
http://www.anz.com.au/Australia/channels/Promotion/HomeEssentials004/homeloan_1.asp
http://www.sydneyloans.com.au/comparison-rates-mislead-and-confuse-borrowers.htmApparently “comparision rate” is Aussie for AAPR
So, AAPR is an expression of the cost of a loan taking in to account fees and so on over the entire length of the loan period. It will usually only relevant to a particular amount, typically $250k.
Hope this helps others!
It does not take into account the pay-per-use fees such as redraw and ATM charges. Be careful.
Robert Bou-Hamdan
Mortgage Adviser
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