Good to know
What is a comparison rate?
It rolls the advertised interest rate together with most fees into a single percentage, so two loans can be compared on a like-for-like basis. A low headline rate with high fees can have a higher comparison rate than a slightly higher rate with no fees.
Does it include every cost?
It includes standard upfront and ongoing fees, but not government charges, redraw fees, or costs that depend on your behaviour. Lenders publish an official comparison rate on a set benchmark; this tool estimates it on your actual numbers.
So should I just pick the lowest comparison rate?
It is a great sanity check, but the right loan also depends on features you will use — offset, redraw, fixed vs variable, flexibility. That is exactly what a broker helps you weigh. Send yourself this and we will compare real products.