Interest rate versus comparison rateUnderstanding the difference between the advertised interest rate and the comparison rate could save you thousands. If you’ve ever shopped around for a home loan, you’ll have noticed that two terms often pop up: interest rate and comparison rate. In Australia, it’s mandatory for lenders to display the comparison rate alongside the advertised interest rate. $2,820 Principal & Interest Variable $0 $530 90% Discounted interest rate for 5 years for homes with an eligible solar systemAvailable for refinance or purchaseNo monthly, annual or ongoing fees More details Compare Disclosure Important Information and Comparison Rate Warning Important Information and Comparison Rate WarningInterest rate vs comparison rate: What’s the difference? The calculation of comparison rates is set by the Uniform Consumer Credit Code and involves a fairly detailed formula.