What a comparison rate tells you, and what it doesn't
Every advertised home loan rate comes with a second number. Here's what goes into it, and why it can still mislead.
ReadHome loan calculator
Your loan.
Our rate.
Competitive variable rates, kept in line with the market and matched to your loan in seconds. Your numbers stay on your screen.
Kept in line with the major banks' advertised rates.
Your repayment
—per month
- Total interest
- —
- Total repaid
- —
- Repayments
- —
Indicative variable rate for a principal-and-interest loan matching what you've entered, reviewed against the market each time this page loads. It is not an offer of credit; your actual rate depends on assessment of your application. Repayments are estimates. They exclude fees and lenders mortgage insurance, and assume the rate doesn't change.
Comparison rates are calculated on a secured loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Borrowing power
How much could
you borrow?
A first estimate, worked out the way lenders assess it: your income after tax, less your spending and commitments, tested at our rate plus the 3% buffer lenders apply.
You could borrow around
—
- Monthly income after tax
- —
- Monthly spending and commitments
- —
- Left over each month
- —
A rough estimate, not an offer of credit or a pre-approval. It uses 2026–27 resident tax rates and the 2% Medicare levy, leaves out tax offsets and HELP repayments, assumes a 30-year principal-and-interest loan, and counts 3.8% of card limits as a monthly commitment. Lenders apply their own living-expense benchmarks and income rules, so what they'll actually lend can be quite different.
After the calculator
Your rate,
confirmed.
The rate here is indicative. Your actual rate depends on your income, your deposit and the property, and we'll confirm it with you before you commit to anything.
- The rate
- An indicative variable rate for a principal-and-interest loan like yours, kept in line with the major banks' advertised rates for the same loan and re-checked while the page is open.
- Your LVR
- The loan as a share of the property's value. Above 80%, lenders mortgage insurance usually applies, which isn't included here. The calculator stops at 95%.
- The comparison rate
- Worked out the standard way, on $150,000 over 25 years, so it lines up with the comparison rates other lenders advertise.
- Fortnightly and weekly
- Each shows the repayment for that frequency over the same term, worked out at that frequency rather than by dividing the monthly figure.
- Refinancing
- Choose refinancing and add your current rate to see the difference per repayment and over the term. Switching costs, such as discharge fees, aren't included.
- Your numbers
- Nothing you enter is sent anywhere, unless you choose to include it in an enquiry.
Further reading
Enquire
Find out where
you stand.
Send us the basics and we'll come back with a straight answer on what's realistic.
Sent
Your enquiry is with us.
Expect a reply within one business day. If it's time-critical, call (03) 9988 1452.