What is a comparison rate?
A comparison rate is an indicative interest rate used to help consumers compare loans.
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.
You can find out if you qualify for a lower interest rate here.