Comparison Rate

What a comparison rate shows

A comparison rate combines the interest rate and most fees into one annual percentage. ASIC Moneysmart lists it alongside the interest rate, repayments, application fees, ongoing fees, loan term and features when comparing home loans.

Read the assumptions and warning next to an advertised comparison rate. The stated loan amount, term and repayment assumptions may differ from the loan being considered. It is a starting comparison, not a personalised cost quote or a measure of whether a loan is suitable.

A dollar example

An illustrative $395 annual fee equals $9,875 over 25 years if it stays unchanged and is paid each year. Dividing $395 by a $150,000 opening loan gives about 0.263%; dividing it by $600,000 gives about 0.066%.

Those divisions only show how the same fixed fee compares with two opening balances. They are not comparison-rate calculations: they ignore the declining balance, payment timing and other charges. Do not add either percentage to an interest rate and call the result a comparison rate.

Use the interest rate for repayments

Enter the loan interest rate in a repayment calculator and record the fees separately. Using a comparison rate and then adding fees can count some costs twice. Check offset, redraw, early-payout and other product conditions separately.

Use the Loan Comparison Calculator to estimate two constant-rate monthly scenarios. Read total loan cost to distinguish principal repaid from interest and included fees. Neither tool calculates a regulated comparison rate.

Source: ASIC Moneysmart: Choosing a home loan, checked 8 September 2026. The fee example is illustrative arithmetic, not a product quote. General information only, not financial or credit advice or a loan recommendation.

Last updated: 8 September 2026.