Begin with the amount received and the payments required over the full term. Include charges that may be paid separately from the scheduled instalments.

Compare like-for-like terms and repayment patterns. A longer schedule can reduce monthly payments while increasing the overall amount repaid.

Review the conditions that could change the result, such as early repayment or a variable rate. The written offer provides the actual costs for a particular loan.

Key takeaways

  • Begin with the amount received and the payments required over the full term.
  • Compare like-for-like terms and repayment patterns.
  • Review the conditions that could change the result, such as early repayment or a variable rate.