What are comparison rates and where can I see them?
A comparison rate is an indicative interest rate used to help consumers compare home loans. Lenders are usually required to display comparison rates next to each interest rate.
Also known as the the ‘true’ or ‘real’ rate, the comparison rate calculates the average interest rate with the addition of any other upfront or ongoing fees during the loan term. Comparison rates operate under fixed conditions, which considers a loan of $150,000 on a 25 year loan period with a principal and interest repayment method.
Not all fees and charges are included in the comparison rate, so it's important to still check these for any loan you are considering.
Find out if you qualify for a lower interest rate here.