Recently advertisers are using the term comparison rate - but what is a comparison rate?
A comparison rate helps us determine the true cost of a loan by calculating the interest rate, fees and charges and presenting them as an interest rate to allow fair comparison.
A Loan of 6.5% that also includes an $8 monthly fee is not the same as a loan the is 6.5% and does not include an $8 monthly fee.
According to www.loanstolifestyle.com.au specialising in Home Loans Perth factors to be included in the comparison rate are -: