Interest rates and fees
Interest rates and fees
Note: this page was updated in January 2017. See previous version.
Total transparency and no sneaky business.
At Harmoney, we’re 100% open and transparent about our rates and fees. If you're thinking about getting a loan, you can check what interest rate will apply to you through our no obligation loan application process, and you won't be charged a Platform Fee until your loan is funded. If you're a Lender, you'll find details regarding the service fee below. Skip to each section:
Harmoney's interest rates are priced on a risk gradient. Each loan application is attributed a risk grade with an associated interest rate according to Harmoney's credit scorecard. The interest rate on a loan is both the interest rate paid by Borrowers and the gross interest rate due to Lenders. Harmoney's risk grades and their corresponding interest rates are displayed in the table below.
- During the loan application, Borrowers provide us with some financial information;
- Based on an assessment of this information and the Borrowers repayment history, we’ll assign a risk grade to the Borrower;
- The Borrower will then be able to apply for a loan at the interest rate that corresponds to their risk grade.
Borrowers in Harmoney's marketplace are limited in the amount they can Borrow, based on the credit grade they are assigned. The following graph shows these limits:
Borrowers in Harmoney's marketplace are limited in the amount they can Borrow, based on the credit grade they are assigned. The following table shows these limits:
|A1 - A5||$35,000|
|B1 - B5||$30,000|
|C1 - C5||$25,000|
|D1 - D5||$25,000|
|E1 - E5||$10,000|
|F1 - F5||$5,000|
Note: After final assessment Harmoney may, in its discretion, specify different ranges of maximum Loan Amounts which you are approved to list for.
Borrowers who maintain their regular repayment schedule will be charged no additional fees beyond the one-off Platform Fee.
Harmoney charges an up-front, one-off Platform Fee to Borrowers of $500. The Platform Fee is added to the loan amount approved.
The Platform Fee will be charged on the loan being advanced. A Platform Fee of $500 applies to Top Ups.
In the case where a Borrower’s repayment is dishonoured, a $15 fee will be charged to the Borrower’s account due to the additional administration required to re-process the payment. The fee will be due in the Borrower's next payment.
The Overdue fee is charged if a payment is not made in full and the account goes into arrears. The fee payable is $20 on each of 6, 36, 66, 96, 120 days after the payment date, if the account remains outstanding. The fee will be payable on the Borrower's next direct debit date.
If enforcement action is required against a Borrower, any legal and associated third party costs incurred will be charged to the Borrower account. The costs charged are due in the Borrower's next payment.
Payment Protect fees (Borrowers Only)
If Borrowers choose to add Payment Protect as an add-on to their loan, the Payment Protect fee will be added to their loan total and included in their monthly repayments. The Payment Protect fee is calculated as a percentage of the loan amount (including platform fee), rounded to the nearest $25.
There are two levels of pricing based on the level of cover Borrowers require or are eligible for:
|Partial||Terminal illness and death.|
|Complete||Death, terminal illness, disability illness and involuntary redundancy.|
If Payment Protect is taken out on a joint application, it must be taken out by both the primary Borrower and the co-Borrower; it cannot be taken out by only one party.
|Term||36 months||60 months|
|Co-Borrower (2x Complete)||9.34%||12.75%|
|Co-Borrower (2x Partial)||7.64%||10.56%|
|Co-Borrower (1x Complete 1x Partial)||8.49%||11.66%|
Note: Prices were changed on 15th August 2016. Click here to see old pricing.
Rebate of fee on early repayment
If a Borrower prepays their loan in full before the end of their originally set term, without having any payments waived, the Payment Protect fee is rebated pro rata using a formula prescribed by the Credit Contracts and Consumer Finance Act (CCCFA):
Payment Protect refund = (p × s × ( s + 1)) ÷ ( t × (t + 1))
- "p" is the Payment Protect fee amount,
- "s" is the number of whole months in the unexpired portion of the period for which the plan applied,
- and "t" is the number of whole months for which the plan applied.
Lenders are charged a Service Fee of 1.25% of the principal and interest payments collected on each note. The service fee is deducted from repayments into the Lender account. The fee is paid to Harmoney for managing Borrower repayments and administering the account on behalf of Lenders.
Service Fees are charged on principal and interest when a loan is prepaid early by the Borrower, even when that loan is an on platform re-write.
NOTE: The Service fee will be replaced by a Lender fee on all new lending from 13 June, 2016. All lending prior to 13 June, 2016 will continue to incur the Service Fee.
Lender Fee (from 13 June, 2016)
The Lender Fee will apply on all new lending from 13 June 2016. The Lender Fee is charged on gross interest received.
The Lender Fee will be tiered based on how much principal outstanding each Lender has on the Harmoney platform, and Lenders will move up and down tiers as that amount changes.
|Tier||Outstanding Principal||Lender Fee|
(% of Gross Interest)
|Tier 1||< $10,000||20%|
|Tier 2||$10,000 - $49,999||17.5%|
|Tier 3||$50,000 +||15%|
Payment Protect Fees for Lenders
Harmoney receives a Sales Commission for arranging the sale of the Payment Protect. The commission is set at the industry standard rate of 20% (rounded to the nearest $25 note) for arranging the sale.
There is also a Management fee of 15% (rounded to the nearest $25 note) of the Payment Protect fee. This is for Harmoney to conduct fair and transparent claims assessment and processing; effective complaint and dispute settlement procedures; and appropriate supervision of claims-related services.
On full loan prepayment by Borrowers, Lenders get rebated the Payment Protect Sales Commission and Management Fee pro-rata as per the table.
|Rewrite||The sales commission and management fee are rebated on a pro rata basis.*|
|Prepayment||The unused portion of the management fee is rebated on a pro rata basis.*|
|Charge off||The unused proportion of the management fee is rebated on a pro rata basis.*|
|Full Waiver||The unused proportion of the management fee is rebated on a pro rata basis.*|
Payment Protect fee Refund = (p × s × (s + 1)) ÷ (t × ( t + 1))
- "p" is the amount of the Payment Protect Fee
- "s" is the number of whole months in the unexpired portion of the period for which the Plan applied
- "t" is the number of whole months for which the Plan applied.