Useful Tips

Comparison rates

Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.

Definition
Comparison rates are a legislated requirement for lenders to provide to home loan consumers.

All credit providers must give a comparison rate when they advertise a rate or a weekly payment for home loans. The comparison rate includes the interest rate or weekly repayment amount, plus most fees and charges.

The comparison result is calculated on the basis of secured credit of $150,000 over a 25 year term.

Benefits
The comparison rate is one tool you can use to compare loans from different lenders.

Disadvantages
The comparison rate does not include many fees, charges and benefits:

      • Fees and charges associated with loan options or events that may or may not be used by the borrower, such as early repayment or redraw fees
      • Fees and charges associated with loan options or events that may or may not be used by the borrower, such as early repayment or redraw fees
      • Fees and charges which aren’t available at the time the comparison rate is provided

The assumptions used to calculate the comparison rate may not relate to your specific loan terms.
Loans may revert to rates other than the advertised rate at the end of the initial loan term (e.g. fixed rate or interest only term).
Comparison rates do not take into account negotiated interest rate discounts.
Comparison rates don’t take into account any lender special offers such as re-finance cash-backs or fee waivers.

Things to consider
Reviewing the comparison rate is one way to compare the cost of different loans, but it is not the only thing to consider when you are deciding which loan is right for you. It is important to talk to us about what features each loan offers