Rate for Risk (Risk Based Pricing)

Updated: Aug 4, 2021

Risk based pricing is the interest rate that lenders offer to a client based on factors such as their credit rating, the security type, employment status and financial situation. Rather than specify an interest rate they will have a minimum and maximum rate range for the loan and will offer you an interest rate within that range based upon these factors.

If the lender decides that you are low risk and that you are likely to repay the loan on time you will get a lower rate. If you are a higher risk, which may be because you have more debt or a lower income, the lender may charge you a higher interest rate.


Speak to your mortgage broker today about risk based pricing.


Kind Regards,


The Newstead Group Team

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