As you know, John Phu has a credit card issued by his bank, WR. In the near future he intends to borrow $300,000 from a bank or other financial institution to purchase a house in Melbourne, being able to provide a sizeable deposit of $100,000. WR advertises a variable interest rate of 5.05% p.a.
Assume he approaches WR after considering interest rates and charges from other banks, and decides to proceed with the loan application.
John knows little about consumer credit law and seeks further information from you.