Comparison Rate

The interest rate plus most fees, expressed as a single annualised rate so you can compare loans like-for-like.

The comparison rate is a single percentage that bundles the headline interest rate with most upfront, ongoing and discharge fees into one figure. Australian lenders are legally required (under the National Consumer Credit Protection Act) to publish a comparison rate alongside any advertised interest rate. It assumes a $150,000 loan over 25 years, so it can understate fees on much larger loans. Use it as a comparison aid, not a literal cost figure.