Comparison Rate

A rate that combines a loan's interest rate with most fees and charges, intended to help compare the true cost of different loans.

In More Detail

Comparison rates are a regulated disclosure requirement in Australia, designed to make headline interest rates easier to compare like-for-like. They are based on a standard loan example, so your actual cost may differ based on your loan amount and term.

When to Seek Help

When comparing loan offers, ask your broker to walk through both the interest rate and comparison rate, and what fees are (and aren't) included.