Back to: Rates and Fees

When working out how much your loan will cost, it's important to take into consideration not only the interest rate, but also other fees and charges that affect the true cost of the loan.

A comparison rate takes this into account by calculating foreseeable bank costs associated with setting up the loan, like up-front charges and on-going fees. It doesn't include government fees and charges, as they are standard across all loans offered by credit providers, or certain fees that are dependent on events that may or may not happen, such as early repayment fees.

Reviewing comparison rates can help give you a more accurate idea of how much you can expect to pay over the life of your loan, and allow you to compare the true rate of your loan with those of other institutions.

While searching for the best product however, you should also take into account the features and benefits of each loan, so you can choose the one that suits your needs, at the lowest cost.