What does a comparison rate account for

What Is A Comparison Rate And How Important Is It Really?

If you’ve heard the term ‘comparison rate’ you might be wondering what it’s all about and how it differs from an interest rate often advertised by lenders.

A comparison rate is a rate that all lenders by law must display next to their advertised interest rates. It’s a rate which takes into account some of the fees and charges of a home loan to give you a more accurate representation of a loan’s interest rate once the costs are taken into account.