What is a comparison rate?

All lenders are legally required to display a comparison rate when advertising any type of loan product.


A comparison rate is derived from :

·       The amount of the loan

·       The length of the loan

·       The repayment frequency

·       The interest rate

·       The fees and charges of the loan



The purpose of a comparison rate is to help consumers identify what the true cost of a loan is.

It includes both, the interest rate, fees and charges, combined into a single percentage figure.

The comparison rate is useful for borrowers to compare the cost of different loans but it is important to consider all of a loans features.


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Contact us @ propertyloans@realrenta.com


Marlene Liontis
Sunday, 26 January 2020

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