Key takeaway
Use monthly payment to test affordability, but use total repayment and effective cost to compare value.
Hold the comparison constant
Enter the same amount borrowed and the same repayment term for every offer. A longer term can lower the instalment while increasing total interest.
Look beyond the quoted rate
Check whether the rate is flat or reducing-balance, then include fees, insurance and compulsory charges when they apply.
Test an earlier payoff
Use an amortisation or debt-payoff view to see whether extra payments shorten the term and whether any early-settlement charge applies.
