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Comparison Rate Calculator
Calculate the true comparison rate for any Australian loan by factoring in fees — both for your actual loan scenario and the regulatory $150,000/25-year standard.
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FAQ
Frequently asked questions
What is a comparison rate?
A comparison rate is an interest rate that includes most fees and charges in a single figure, making it easier to compare the true cost of different loans. Australian law requires lenders to display a comparison rate alongside their advertised rate, calculated on a standard $150,000 loan over 25 years.
Why does the regulatory comparison rate use $150,000 over 25 years?
This standardised loan size and term is set by Australian law (National Consumer Credit Protection Act) so that consumers can compare like-for-like. However, because fees are fixed amounts, a smaller loan inflates the impact of fees — making the regulatory comparison rate misleading for large mortgages. This calculator shows both the regulatory rate and your actual scenario rate.
What fees are included in a comparison rate?
Comparison rates include establishment fees, monthly fees, and annual fees. They exclude government charges (stamp duty, title insurance), redraw fees, and fees conditional on an event (like break costs). This is why two identical loans can have different comparison rates.
How much do fees add to my interest rate?
A $600 establishment fee on a $500,000 mortgage over 30 years adds less than 0.05% to the effective rate — minimal. But a $600 establishment fee on a $50,000 personal loan over 3 years can add 0.5%–0.8% to the effective rate. Fees hurt more on small, short loans.
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