RateCity
Comparison Rate
When comparing home loans, you should always compare the comparison rate rather than the advertised interest rate. The advertised interest rate will not necessarily be the rate that the lender will offer you because most advertised interest rates are calculated on a loan of $150,000 over 25 years. If you plan to borrow more or less than $150,000, then you should compare the comparison rate of the loan as you may have a better rate by borrowing more money.
The comparison rate is also known as the 'real rate', the 'Annual Average Percentage Rate' or 'AAPR' and calculates the average rate including any ongoing or upfront fees over the life of the loan. This is especially handy if you are fixing part of your loan or have an introductory rate as the lender may increase the interest rate dramatically following the fixed period.
The table below displays some of today's best bank variable interest rates.
The comparison rate is also known as the 'real rate', the 'Annual Average Percentage Rate' or 'AAPR' and calculates the average rate including any ongoing or upfront fees over the life of the loan. This is especially handy if you are fixing part of your loan or have an introductory rate as the lender may increase the interest rate dramatically following the fixed period.
The table below displays some of today's best bank variable interest rates.
