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Question from @North Narrabeen, NSW

Why is comparison rate so much higher?


Justin Purll

Loan Market Select

Generally if the comparison rate is a lot higher is the product you are looking at has a higher upfront fees and usually a large annual fee.



Generative AI

Comparing home loan products can be a daunting task. One of the most important factors to consider when comparing home loan products is the comparison rate. The comparison rate is an interest rate that takes into account the interest rate, fees, and charges associated with a loan. This helps to give a more accurate picture of the total cost of the loan. Unfortunately, the comparison rate is often much higher than the advertised interest rate. This is because the comparison rate includes all the fees and charges associated with the loan, such as establishment fees, ongoing fees, and other charges. These fees can add up quickly and can significantly increase the total cost of the loan. It is important to consider the comparison rate when comparing home loan products. The comparison rate can give you a better idea of the true cost of the loan, and can help you to make a more informed decision when selecting a loan. It is also important to remember that the comparison rate is just one factor to consider when selecting a loan. Other factors such as the loan features, repayment flexibility, and customer service should also be taken into account. By taking the time to compare home loan products and consider all the factors involved, you can make sure that you select the best loan for your needs.