Comparison rates explained – and why they matter
When comparing home loans, it’s easy to focus on the headline rate – but that number doesn’t tell the full story. The comparison rate shows the true cost once most fees are included.
Here’s how it works:
- Interest rate – what you’re charged on the loan balance.
- Fees – upfront, ongoing or annual costs added in.
- Comparison rate – combines both, giving a clearer picture of what you’ll actually pay.
While Lender A appears cheaper, Lender B may cost less overall.
Keep in mind: comparison rates are based on a $150,000 loan over 25 years. Most home loans are much larger and longer, so treat the rate as a guide – not a guarantee.
Want to know which loan suits your unique situation? Let’s compare your options side-by-side.
Rates, prices and lending policies are shifting – so now’s a smart time to check your finance. If you’re planning to build, buy or refinance, let’s make sure your loan is set up for what’s ahead.