Comparison rate calculator – Use the Atomic Home Loans Comparison rate calculator to calculate the true cost of your loan. The comparison rate calculator takes into consideration the amount you pay in monthly fees, annual fees, set up costs and interest rates, to determine the true cost of your loan.
This comparison rate calculator is a great tool to use when trying to determine the true cost of your home loan. It includes all fees and charges, in addition to the interest rate, to provide a all include comparison rate, which shows you the true cost of your loan.
Comparison rates – although a great idea and very necessary in most cases – they have been outdated for a while now given they are generally based on a $150,000 loan over 25 years.
Currently, the average loan size in Australia is approximately $490,000 and the average loan term is 30 years. Thus, a $395 fee is proportionately higher on a $150,000 loan than it is on a $500,000 loan.
Most advertised comparison rates are somewhat misleading, sometimes scaring off people from a certain loan.
You should use this comparison rate calculator to work out the true cost of your home loan rather than relying on the advertised comparison rate.
A lot of people don’t quite understand what a comparison rate is, with some people believing it is the interest rate that a comparable loan through another lender will cost.
This comparison rate calculator will let you figure out exactly what your comparison rate is, and how a different loan size or different fees will impact your comparison rate.
If you need more help or would like a more detailed analysis, contact a Home Loan Expert from Atomic Home Loans by calling (02) 9188 8834 or by leaving us a message on our contact us page so one of our experts can get in touch with you.See All Calculators