Comparison home loan interest rates

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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 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.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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