Problems with interest rates and repayments? Ask for home loan help.
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A home loan comparison rate is a way comparing the total cost of one lenders loan products against another.
Put simply the interest rate and fees on a theoretical $150,000 loan over 25 years are combined to give a gross rate and every lender uses the same formula so the comparison is accurate.
The Comparison Rate is not used on Line of Credit Products because there can be too many variables if regular deposits and draws are made. Whilst it is a useful tool for comparison time may have passed it by as the “normal” home loan is well in excess of $150,000 and so the fee component is directly proportional to the increased loan size making the published comparisons inaccurate.
Comparison Rates are published on the Websites of Lenders and on the Cannex website.
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