Where do I access comparison rates and what do they mean?
A Comparison Rate is an indicative interest rate, which helps consumers identify the “true cost” of a loan. This rate is calculated by taking into account both the interest rate and the fees and charges related to the home loan product, and reduced to a single percentage figure for a specified loan amount and term. A Comparison Rate only includes fees and charges that are definitely payable under the loan contract – for example, establishment and monthly account fees. It does not include those that are ‘event based’, which may or may not be payable during the loan term. These could include redraw or early termination fees. The Comparison Rate also does not include government and statutory fees, as these fees are standard, regardless of the type of loan or lender you choose.
