Yes, lenders are charged an interest margin fee of 10% of the gross interest received from borrowers. This is charged at the time an interest payment is allocated to a lender’s RateSetter account. You are also charged the amount of interest earned on your funds whilst they are in your holding account. Management costs also include borrower fees, which are received from a borrower in relation to loan to which lender funds are matched. Read our Product Disclosure Statement for further details

Importantly, all lending rates on the RateSetter site are shown after the effect of the interest margin fee. The rate you see is the rate you get, subject to a few important assumptions. Learn more about how we calculate and display rates