Actuarial When the term “ACTUARIAL” is applied to lending, it refers to a method of calculating a rebate or refund of precomputed finance charges. Rebates for early termination are as a general rule more favorable to the borrower if actuarial method is used, however in Australia the more favorable method used is called “Rule of 78″. (Particularly in respect of Motor Vehicle finance)
OUR FINANCIERS USE
BMW Rule of 78
CBA & WESTPAC Contract implicit rate discounted by 2%. (in Westpac scenario they also add a “break cost” of approx $200)
B of Q Standard method. Contract implicit rate discounted by 2% plus 1 or 2 payments dependent upon reason for termination
B of Q Platinum discounted. “Rule of 78″ plus a “break cost” of approx 1/2 one monthly installment.
ANZ & ESANDA A discount Rate applies. Equal to but not less than 70% of the rate implicit in calculating payments. Plus $200.00 (e.g. contract rate say 8% @ 70% = 5.60%)
CAPITAL A discount Rate applies. Equal to but not less than 70% of the rate implicit in calculating payments.
MACQUARIE Contract implicit rate discounted by 4%.

Disclaimer: Please note the above lenders, rates, and fees are indicative only and should only be used as a guide. Firm rates, and fees can only be quoted by the financier at the time of early payout.