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Comparison home loan interest rates


RateCity Staff
By RateCity Staff

October 26th, 2009


The comparison rate will combine additional fees with the advertised interest rate and the create an average rate over the life of the loan. Comparison interest rates give you a more realistic interest rate and allow you to budget your expenses and repayments much more effectively.

A comparison interest rate is also commonly known as the 'real rate', 'Annual Average Percentage Rate' or 'AAPR'.

It is important rate to consider the comparison rate when calculating your home loan repayments. This is because the comparison interest rate includes other additional fees and charges such as ongoing monthly or yearly fees and upfront fees such as application or establishment fees that you may incur depending on the loan.

The comparison rate will combine these fees with the interest rate and then create an average rate over the life of the loan. Comparison interest rates give you a more realistic interest rate and allow you to budget your expenses and repayments much more effectively.

The great news for consumers is that RateCity.com.au will always display the comparison rate for home loans so you can compare home loans including fees and charges. Insitutions are also now trying to get the advertised rate and comparison rate closer together which is great news for consumers.

Use RateCity's home loan calculator to compare interest rates and find repayments to suit your circumstances.


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RateCity provides Home Loan news and features, including a range of weekly stories and economic updates. By checking our Home Loan news and features daily, you can ensure that you receive up to date, expert commentary on current financial and economic issues. Before you search, compare or apply for a Home Loan product that may be suitable for your needs, help yourself understand the market by reading Home Loan news and features at RateCity.

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