Home loan comparison

Lender

Variable
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loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
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    HSBC – Home Value Home Loan (Principal and Interest) (LVR < 80%)

      Fixed
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      Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 1 Year

        Variable
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        Beyond Bank – Purple Basic Variable Home Loan (New Customer) (LVR 60%-80%)

          Variable
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          Athena – Straight Up Owner Occupied - Celebrate (LVR 50%-60%) (Principal and Interest)

            Fixed
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            IMB Bank – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR ≤ 80%)

              Variable
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              Liberty Financial – Liberty Low Rate Home Loan (LVR < 95%)

                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 25, 2024. View disclaimer.

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                Calculator Assumptions: Comparison Rate Calculator

                This calculator provides you with an estimate of a comparison rate for your current loan, to enable you to compare it with other loans. A comparison rate is standardised calculation that seeks to provide an indication of the true cost of a loan, by factoring in the interest rate and certain fees and charges.

                Assumptions:

                Fees

                Comparison rates do not take into account the following fees:

                • Government stamp duty
                • Conveyancing fees
                • Fee waivers
                • Break costs and early termination fees
                • Deferred establishment fees
                • Any optional costs such as early repayment and redraw fees
                • Extra features like offset accounts or extra repayments

                This calculator takes into account the fees entered by the user in the following categories - upfront fee, monthly fee, and discharge fee.

                Calculation

                Comparison rate is calculated using the interest rate, the monthly repayment, the total fees entered by the user, and the principal loan amount. The total cost of the loan includes the total interest payable over the term, the principal and all fees.

                We assume that:

                • repayments are made monthly;
                • the interest rate charge is divided equally over 12 monthly payments; and
                • interest is charged to the loan account at the same frequency and on the same day as the repayments are made.

                Only the initial repayment amount is calculated and we assume this repayment stays the same for the loan term. In reality, repayment amounts can change for a variety of reasons.

                What is the difference between the advertised interest rate and the comparison rate?

                The interest rate is the rate the lenders use to advertise their home loan products. This is the rate they charge for borrowing money and is charged on the loan balance per year. This influences how much your minimum monthly loan repayment will be.

                On the other hand, a comparison rate is not just the interest rate, but also includes the fees and charges associated with the loan. Because of this, the comparison rate displays the total overall cost of the home loan.

                What are some of the charges included in the comparison rate?

                As comparison rates include all fees and charges on a loan, here is what lenders are likely to include when calculating the comparison rate: 

                Upfront fees

                • Application fee
                • Pre-approval fee
                • Valuation fee
                • Documentation preparation fee
                • Legal fee
                • Settlement fee

                Monthly fees

                • Monthly account fee
                • Annual package fee
                • Periodical admin fee

                Discharge fees

                • Discharge administration fee
                • Documentation preparation fee
                • Settlement fee

                Is there anything the comparison rate does not take into account?

                Government charges such as stamp duty and conveyancing fees are not included in comparison rates. Some other charges that are not factored in are fees that may or may not happen in the future such as redraws, late or early repayment fees, and early exit fees when you decide to change lenders.

                Are comparison rates useful when comparing fixed rate products?

                A fixed-rate loan will have a fixed interest rate over an agreed term, usually up to five years. After the fixed term, the interest rate will roll onto a variable interest rate. Using a comparison rate may help compare fixed rate products because this lets you know what the average cost of the loan will look like per annum.

                A comparison rate calculator can help you compare different home loan products and see how much you can save from different lenders. 

                This can let you know what your fixed monthly repayment may be, your ongoing repayment, the total interest payable, total fees, and the total overall cost of the loan

                What guidelines are used when lenders calculate the comparison rate?

                Different loan amounts will have different comparison rates, however, lenders are generally required to calculate the comparison rate on a home loan of $150,000 with a term of 25 years, and with principal and interest payment. 

                Is the comparison rate an accurate reflection of the 'true cost' of the loan?

                As the comparison rate includes the interest, fees, and charges, it does reflect the true cost of a loan, and makes it easier to see which lender offers the most cost effective option for you.

                Since the comparison rate is generally calculated at $150,000 for 25 years, it may not be accurate to your exact situation; especially as the average home loan in Australia is nearly $500,000.

                The advertised rate can be a quick, useful way to compare different loans. However customising the comparison rate with our comparison rate calculator will help show you a more accurate overall cost of the loan you are looking for, as it allows you to tailor the information based on your personal loan circumstances such as loan amount and loan term.

                Do all loan products have a comparison rate?

                All lenders in Australia are mandated by the Consumer Credit Code to include the comparison rate in their home loan products. This is done so lenders can be honest as to how much the home loan would be with their rates and charges. 

                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 made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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. Rates correct as of 9 July 2024.

                ^The addition of offset sub-account means your comparison rate will change.

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