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Comparison home loan interest rates
A comparison interest rate is also commonly known as the ‘real rate’, ‘Annual Average Percentage Rate’ or ‘AAPR’.
It is important rate to consider the comparison rate when calculating your home loan repayments. This is because the comparison interest rate includes other additional fees and charges such as ongoing monthly or yearly fees and upfront fees such as application or establishment fees that you may incur depending on the loan.
The comparison rate will combine these fees with the interest rate and then create an average rate over the life of the loan. Comparison interest rates give you a more realistic interest rate and allow you to budget your expenses and repayments much more effectively.
The great news for consumers is that RateCity.com.au will always display the comparison rate for home loans so you can compare home loans including fees and charges. Insitutions are also now trying to get the advertised rate and comparison rate closer together which is great news for consumers.
Use RateCity’s home loan calculator to compare interest rates and find repayments to suit your circumstances.
Disclaimer
This article is over two years old, last updated on October 25, 2009. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 26 Nov, 2024
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