Aspect Learning Guide
Assessment rate
Lenders often assess your repayments at a higher rate than the actual rate to test whether the loan is affordable.
Assessment rate explained in plain English
Lenders often assess your repayments at a higher rate than the actual rate to test whether the loan is affordable.
Why lenders use it
It tests whether you could manage repayments if rates increased.
Impact
A higher assessment rate reduces borrowing capacity.
Broker tip
Different lenders may still assess income, debts and expenses differently.
General information only: This guide does not take into account your personal objectives, financial situation or needs. Lending policy varies between lenders.