What is a comparison rate? - Mortgage Choice
mortgagechoice.com.au
What is a comparison rate? - Mortgage Choice
It’s important to understand the difference between an interest rate and comparison rate when comparing home loans. Here we explore what a comparison rate is and why they are useful when it comes to finding the right home loan for you.
May 25, 2023
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How to Compare Interest Rates
People love to compare interest rates, but they forget to compare prices and income. In the early 80s, rates were brutal, but homes cost a fraction of what they do today and wages still lined up with the math. You could refinance when rates fell. You could not refinance a price that doubled. Today the problem is not just the rate. It is the gap between incomes and home prices. That is why buying feels impossible, even at lower rates. The real conversation is not about who had it harder. It is ab
0:11
People love to compare interest rates, but they forget to compare prices and income. In the early 80s, rates were brutal, but homes cost a fraction of what they do today and wages still lined up with the math. You could refinance when rates fell. You could not refinance a price that doubled. Today the problem is not just the rate. It is the gap between incomes and home prices. That is why buying feels impossible, even at lower rates. The real conversation is not about who had it harder. It is ab
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