Comparison rate matters

When comparing home loans, it’s easy to focus on the headline rate – but that number doesn’t tell the full story. The comparison rate shows the true cost once most fees are included.
Here’s how it works: 

•  Interest rate – what you’re charged on the loan balance.
• Fees – upfront, ongoing or annual costs added in.
• Comparison rate – combines both, giving a clearer picture of what you’ll actually pay.

Let’s compare your options side-by-side. from the below table, 

While Lender A appears cheaper, Lender B may cost less overall.

 Keep in mind: comparison rates are based on a $150,000 loan over 25 years. Most home loans are much larger and longer, so treat the rate as a guide – not a guarantee.