How to compare your current home loan

Headline rate, comparison rate, package effect, the three numbers your current lender hopes you don’t add up.

9 min readBy Sarah ChenStage 2 of 6

Your real current rate isn’t the rate on your statement, it’s the rate after offset, package fees, and the discount your bank quietly added when you complained.

Three lines, three rates

Headline rate: what they advertise. Your rate: after discount. Comparison rate: includes most fees, normalised. Bank competitor rate: what they’ll quietly match if you call retention.

From the rest of the site

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates are calculated on a secured loan of $150,000 over 25 years for home loans and a loan of $30,000 over 5 years for car and personal loans, unless the lender states another basis. Business loans and equipment finance for a business purpose have no mandatory comparison rate.