What is a comparison rate? 

  • A tool to help customers identify the true cost of a loan. It is calculated using a standard formula.

  • It is a rate which includes the interest rate and certain fees and charges relating to a loan.

The comparison rate does not include:   

Government charges such as stamp duty or mortgage registration fees

  • Fees and charges associated with loan options or events that may or may not be used by the borrower, such as redraw fees

  • Fees and charges which aren’t available at the time the comparison rate is provided

  • Cost savings such as fee waivers or the availability of interest offset arrangements which can influence the cost of a loan.