Use the tool below to compare home loan interest rates side by side and get a clearer picture of what different loans will actually cost you. Because the lowest rate isn’t always the cheapest loan — and understanding the difference could save you thousands.
What is a comparison rate and why does it matter?
When lenders advertise a home loan, they’re required by law to display two figures: the interest rate and the comparison rate. The interest rate is the base rate applied to your loan balance. The comparison rate is a more complete figure – it factors in the interest rate plus most ongoing fees and charges, expressed as a single annual percentage.
The comparison rate exists specifically to help borrowers make fairer, like-for-like comparisons between lenders. A loan advertised at a low interest rate but with high monthly fees may actually cost more than one with a slightly higher rate and fewer fees. Looking at the comparison rate gives you a more honest view of the total cost.
That said, comparison rates have limitations. They’re calculated on a standardised loan amount of $150,000 over 25 years, which won’t reflect your actual loan size or term. Fees that are conditional – like redraw fees or break costs on a fixed loan – are also excluded. So while the comparison rate is a useful starting point, it shouldn’t be the only factor you consider.
What else should you look at when comparing home loans?
Beyond the interest rate and comparison rate, there are several other factors worth considering before settling on a loan:
Loan features – Does the loan include an offset account? Can you make additional repayments without penalty? Is there a redraw facility? These features can significantly reduce the amount of interest you pay over the life of the loan and are worth weighing up alongside the rate.
Fixed vs variable rate – A variable rate loan moves with the market, giving you flexibility but some uncertainty around future repayments. A fixed rate locks in your repayments for a set period, which is useful for budgeting but usually comes with restrictions on extra repayments and exit costs if you want to refinance or sell during the fixed term. A split loan lets you fix part of your loan and keep the rest variable.
Loan term – Most home loans are structured over 25 or 30 years, but a shorter term means you pay less interest overall, even if your monthly repayments are higher. It’s worth running the numbers on different terms to see the long-term impact.
Upfront and ongoing fees – Application fees, valuation fees, annual package fees, and discharge fees all add to the true cost of a loan. Some lenders waive these entirely; others bundle them into a package with rate discounts attached.
Lender flexibility – How easy is it to refinance, switch products, or access equity down the track? Some lenders are more straightforward to work with than others, and this matters when your circumstances change.
Why use a mortgage broker to compare rates?
The rate comparison tool above shows you publicly available rates, but the rate you’re actually offered by a lender will depend on your individual financial situation – your income, expenses, deposit size, credit history, and the type of property you’re buying all play a role.
As an independent mortgage broker, we compare options across a wide panel of lenders on your behalf – including rates and products that aren’t always visible through public comparison tools. We’ll look at your situation holistically, identify which lenders are most likely to approve you, and find a loan structure that suits your goals, not just the one with the headline rate.
There’s no cost to you for this service. We’re paid by the lender when your loan settles, and we’re obligated under Australian law to act in your best interests.
If you’ve used the tool above and want to talk through what you’re seeing, or you’d simply like us to do the comparison work for you, get in touch – we’re happy to help.
Need some help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.