Savings .com.au

Interest rate vs comparison rate

A loan’s comparison rate can help provide a better indication of the cost of a loan by taking both the interest rate and fees into account.

That’s why the comparison rate is usually higher than the advertised interest rate.

By law, each lender is required to display the comparison rate of a home loan next to the advertised interest rate.

How is the comparison rate calculated?

Not all home loans are the same, which is why the comparison rate isn’t always a perfect way of comparing home loans. A home loan comparison rate is uniformly calculated based on an assumed loan amount of $150,000 with a loan term of 25 years, and then factors in the fees the loan has stretched over that time.

Because of these assumptions, the comparison rate should be taken with a pinch of salt. Data from 2019 found the median value of a dwelling in Australia was $516,713 - much more than $150,000 - and home loans can often last for 30 years plus.

Despite its flaws, however, the comparison rate can make it a lot easier for you to compare home loans on costs.

Our home loan comparison rate calculator can help you see how comparison rates are calculated to reflect a loan’s costs.

Comparison rate calculator

To use our comparison rate calculator, enter the following information:

  • The loan amount
  • The loan term
  • The fixed interest rate and the fixed term (if applicable)
  • The ongoing interest rate (not introductory or fixed)
  • Monthly fees
  • Upfront fees
  • A discharge fee (if applicable)

By entering all of this, Savings.com.au’s home loan comparison rate calculator can estimate a loan’s comparison rate, repayments, total fees payable, total interest payable, and the total cost.


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure

loans.com.au – Variable Home Loan P&I <90%

  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
Variable
More details
Built and funded by CommBank
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
Built and funded by CommBank

Unloan – Variable Rate Home Loan LVR < 80%

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
Variable
More details
100% offset
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
Disclosure
100% offset

Ubank (part of NAB) – Flex variable home loan - 100% offset

  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
Disclosure
Variable
More details
Disclosure

Macquarie Bank – Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)

  • Check your eligibility in as little as one minute
Disclosure
Variable
More details

IMB Bank – Budget Home Loan (Principal and Interest) (LVR 90%-95%)

    Variable
    More details
    Disclosure

    Ubank (part of NAB) – Neat home loan - max. 60% LVR (Owner occupied, Principal and interest)

      Disclosure
      VariableN/A
      More details

      Regional Australia Bank – Home Loan without Offset - OO,PI LVR 90% or less

        Variable
        More details

        ME – CompleteME Home Loan - LVR 60% to 80% - $150,000 to $400,000

          Variable
          More details

          Heritage Bank – Home Advantage Variable $150,000 to $249,999 LVR >80% to 90%

            Variable
            More details
            Disclosure

            Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 80% - 90%)

              Disclosure
              VariableN/A
              More details

              P&N Bank – Basic Variable Home Loan >90% and =<95%

                Variable
                More details

                Great Southern Bank – Offset Variable - Owner Occupier Principal & Interest (LVR is above 80% and less than or equal to 90%)

                  Variable
                  More details
                  Disclosure

                  Ubank (part of NAB) – Neat home loan - max. 80% LVR (Owner occupied, Principal and interest)

                    Disclosure
                    Variable
                    More details
                    Disclosure

                    Macquarie Bank – Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 80%)

                      Disclosure
                      Variable
                      More details
                      • Available for purchase or refinance, min 10% deposit needed to qualify.
                      • No application, ongoing monthly or annual fees.
                      • Quick and easy online application process.
                      Disclosure

                      loans.com.au – Variable Home Loan with Offset P&I <90%

                      • Available for purchase or refinance, min 10% deposit needed to qualify.
                      • No application, ongoing monthly or annual fees.
                      • Quick and easy online application process.
                      Disclosure
                      Variable
                      More details

                      Bank Australia Limited Trading as Qudos Bank – Qantas Points Home Loan (Owner Occupied) (PI) (LVR <80%) 10-20%

                        Variable
                        More details

                        AMP – Essential Home Loan (Owner Occupied, Principal and Interest, $250,000+ <= LVR 90%)

                          VariableN/AN/A
                          More details
                          Disclosure

                          Westpac – Flexi First Option Home Loan (Promo) - Principal & Interest (LVR 70-80%)

                            Disclosure
                            Variable
                            More details

                            Bank of Queensland – Clear Path Variable Rate Home Loan Discount Rate (max 90% LVR)

                              Variable
                              More details

                              Suncorp Bank – Home Package Plus Personal Variable First Home Buyer Special (Principal and Interest) ($150k+, LVR 80%-95%)

                                Important Information and Comparison Rate Warning

                                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 5, 2025. View disclaimer.

                                Important Information and Comparison Rate Warning