Australian Mortgage Comparison Calculator

Compare two loan options including the Australian comparison rate. See true monthly cost at your actual loan size, fee transparency analysis, and refinance break-even. All figures in AUD.

$
Lender A - Cheaper
% p.a.
% p.a.
$
$
$
Lender B
% p.a.
% p.a.
$
$
$
Lender A is Cheaper
A$25,011
Total cost difference over 30 years · A$69/mo saving
Lender A Monthly (incl. fees)
A$3,601
Lender B Monthly (incl. fees)
A$3,671
Lender A Total Cost
A$1,296,521
Lender B Total Cost
A$1,321,532
Lender A Rate Gap
0.4% — high fees
Lender B Rate Gap
0.0% — low fees

The comparison rate is a legally required disclosure that combines the interest rate and most fees into a single annual percentage rate. It is designed to help you compare the true cost of different loans.

Reference Loan Amount
A$150,000
Fixed by law — all lenders must use $150,000
Reference Loan Term
25 years
Fixed by law — all lenders must use 25 years
Loan 1 Comparison Rate
6.3%
6.0% advertised + fee impact
Loan 2 Comparison Rate
6.2%
6.2% advertised + fee impact
Why the comparison rate can be misleading:
  • It is based on a $150,000 loan. For a $600,000 loan, fixed fees (like a $400 application fee) have far less impact — so the real comparison rate for your loan size is different
  • It uses a 25-year term — if your loan is 30 years, the comparison rate does not accurately reflect your fees spread
  • Break costs and discharge fees are excluded from the comparison rate calculation
  • Redraw fees, offset account fees, and extra repayment fees are not always included
Despite limitations, it is the best standardised tool available. Use it as a first filter, then calculate the true cost for your actual loan size using the Pro section below.

The legal comparison rate is based on a $150,000 loan. For larger loans, fixed fees matter much less — the true comparison rate for your loan can be significantly lower. Here is the real cost at different loan sizes.

Loan SizeLender A MonthlyLender B MonthlyCheaper OptionSaving/mo
A$250,000A$1,505A$1,530Lender AA$24
A$400,000A$2,404A$2,447Lender AA$44
A$600,000 (yours)A$3,601A$3,671Lender AA$69
A$800,000A$4,799A$4,895Lender AA$95
A$1,000,000A$5,997A$6,118Lender AA$121
A$1,500,000A$8,992A$9,177Lender AA$186
Note: The advertised comparison rate is mandatory for $150K/25yr only. At your actual loan size of A$600,000, fixed fees have a smaller proportional impact than the comparison rate implies.

How to Use This Australian Mortgage Comparison Calculator

Enter the details of Loan A and Loan B — including the advertised interest rate, loan term, loan amount, and any fees (application, ongoing monthly, and annual fees). The calculator computes the true comparison rate at your actual loan size, total interest cost, and break-even point if you are refinancing.

Key Fees to Include

Break costs on fixed rate loans are not included in the advertised comparison rate and can be substantial — tens of thousands of dollars if you break a fixed rate mortgage when rates have fallen.

The Formula

Comparison Rate (per NCCP Act, standardised basis):
Calculated on $150,000 loan over 25 years
Includes: interest + application fee + monthly/annual fees
Excludes: break costs, government charges, LMI, offset fees

True Cost Rate (your actual loan size):
Solve for r where: Loan Amount = PV of all payments + fees at rate r

Refinance Break-Even:
Months to Break Even = Switching Costs ÷ Monthly Saving

The legal comparison rate uses a $150,000 reference loan. For larger loans (e.g., $600,000), the impact of fixed fees is proportionally much smaller, making your true effective rate lower than the advertised comparison rate. This calculator shows both the legal comparison rate and your actual effective rate.

Example

Anna Comparing Two Loans in Brisbane, QLD

Anna has a $550,000 loan and is comparing her current lender against a competitor.

Loan A (Current)Loan B (New)
Advertised Rate6.49%6.09%
Application Fee$0$300
Monthly Fee$10/mo$0/mo
Annual Package Fee$0$395/yr
Legal Comparison Rate6.57%6.36%
Monthly Repayment$3,480$3,340
Monthly Saving$140/mo
Switching Costs (discharge + legal)~$2,500
Break-Even Point~18 months

Frequently Asked Questions

The comparison rate is a single annual percentage rate that combines the advertised interest rate with most fees and charges. It is required by law under the National Consumer Credit Protection Act to help borrowers compare the true cost of different loans on a consistent basis. Lenders must display it alongside the advertised rate in all home loan advertising. It is calculated on a standardised reference loan of $150,000 over 25 years.
The $150,000 and 25-year reference figures are set by Australian law to provide a standardised basis so all lenders calculate and display comparison rates consistently. However, this means the comparison rate can be misleading for larger loans — a $400 application fee has a much larger proportional impact on a $150,000 loan than on a $600,000 loan. For your actual borrowing, the effective cost rate will differ from the advertised comparison rate, which is why this calculator computes a true rate at your actual loan amount.
A gap under 0.10% indicates very low fees and a transparent loan. A gap of 0.10% to 0.25% is typical for standard variable loans. A gap above 0.25% suggests significant ongoing or upfront fees, while a gap over 0.50% is a red flag indicating that the advertised rate is substantially misleading. Always check the product disclosure statement to understand the specific fees driving a large gap.
The comparison rate legally excludes break costs on fixed rate loans (which can be tens of thousands of dollars), discharge and exit fees, government charges such as stamp duty and mortgage registration, lenders mortgage insurance, offset account fees, and redraw transaction fees. For fixed rate loans this is particularly important — the comparison rate can significantly understate the true cost if you break the fixed period early.
Compare your current rate and monthly repayment to the best available offer. Calculate the switching costs — typically $1,500 to $4,000 covering discharge fees, new application fee, valuation, and legal costs. Divide the total switching cost by your monthly saving to find the break-even point in months. If break-even is under 24 months and you plan to stay in the loan beyond that, refinancing is generally worthwhile. Always contact your current lender first — they often match competitor rates to retain your business.

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