Home loan comparison rates

It’s important to understand the difference between an interest rate and comparison rate when comparing home loans. Here we explore what a comparison rate is and why they are useful when it comes to finding the right home loan for you.
Home loan comparison rates

What is a comparison rate?

When comparing home loans you will notice a comparison rate is showcased next to the interest rate. The comparison rate is a legal requirement for lenders to be displayed next to their advertised interest rates.

A comparison rate is helpful when determining the home loan that is right for you as it takes into account some of the fees and charges of the loan. It is intended to give you a better overview on the true cost of the loan compared to the interest rate.

What does a comparison rate mean?

The use of a comparison rate means it will make it easier for you to compare different home loan products available by multiple lenders. This can be due to the fact that a loan with a lower interest rate, may have a high comparison rate and cost more in the long term due to higher establishment fees,  ongoing costs, or a special rate period. 

Speak to your local Mortgage Choice broker today, to understand how comparison rates work further and ensure you are getting the best loan for your situation. 

Latest home loan interest rates
Starting from
Comparison rate
Disclaimer: Interest rate associated with | minimum loan size: . Further conditions, fees and charges may apply.

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How is a comparison rate calculated? 

As per the legal requirements, the comparison rate is calculated by lenders on a loan of $150,000 for a period of 25 years. Included in the comparison rate are any apparent fees at the time comparison rate is disclosed. 

These fees can include: 

  • Annual fee (if any)
  • Establishment fee (if any)
  • Valuation fee (if any)
  • Legal fees
  • Discharge fee 

It is important to note that not all fees and charges are included in the calculation of a comparison rate as a lender will not include any government fees and charges (e.g. stamp duty), or charges that occur in specific circumstances (e.g. paying the loan off early). 

A comparison rate will only allow comparisons based on cost and does not include other factors offered by lenders, such as flexible payment arrangements, using offset accounts or fee free accounts. 

View our top five interest and comparison rates below or compare thousands of loans we have available here.

Our current interest rates

Interest Rate*
Comparison Rate
Interest Rate*
Comparison Rate

Credit criteria, conditions, fees and charges apply. Subject to suitability. The comparison rates in this table are based on a loan amount of $150,000 and a term of 25 years. Warning: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.