Indicative rate tiers
Ranges below are indicative examples only — actual pricing varies by lender, asset, term and your file, and moves with the RBA cash rate and funding markets. Treat them as relativities, not quotes; a broker confirms live pricing for your profile.
| Profile | Typical shape | Indicative range (p.a.) |
|---|---|---|
| Prime full doc | 2+ yrs ABN, clean credit, property, financials, late-model asset | ~7–9% |
| Standard full doc | Established ABN, clean credit, older asset or no property | ~8–10.5% |
| Low doc | No financials; ABN/GST history + property or deposit | ~9–13% |
| New ABN | <12 months trading, deposit + experience | ~10–14% |
| Credit impaired | Defaults/judgments; specialist lender, deposit | ~12–18% |
The seven levers that move your rate
- Asset age and type. New, common, resaleable = cheap. Old, exotic, vocational = loaded.
- Documentation level. Full doc beats low doc by roughly 1–3% — sometimes worth the paperwork.
- Property ownership. The single biggest binary in equipment pricing.
- Deposit. Cuts lender exposure; on marginal files it cuts the rate too.
- Credit conduct. Recent, unpaid, finance-related defaults hurt most; old paid telco defaults barely register with specialists.
- Term and balloon. Longer terms and bigger balloons increase lender risk exposure and can nudge pricing.
- Lender selection. The same file can price 2%+ apart across lenders in the same week — this is the broker's whole job.
Fixed vs variable, and fees
Australian equipment finance is overwhelmingly fixed-rate — your repayment is locked for the term, which suits budgeting but means early payout attracts break costs. Compare deals on total cost including establishment fees (commonly a few hundred dollars), monthly account fees, and any brokerage — not the headline rate alone. Model scenarios in the calculator.
Frequently asked questions
Why can't anyone just tell me 'the rate'?
Because equipment finance is risk-priced across dozens of lenders. Any single advertised number is either the best-case tier or an average that applies to nobody. Ranges by profile are the honest answer.
Do rates follow the RBA cash rate?
Funding costs move with the cash rate and swap markets, so new-loan pricing drifts accordingly — but existing fixed facilities don't change.
Is the cheapest rate always the best deal?
No — a slightly higher rate with the right structure (seasonal repayments, sensible balloon, no early-exit sting) regularly beats the cheapest sticker. Compare total cost and fit.
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