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@glaubenszentrum It's probably 'good enough' when comparing only variable rates (excluding introductory rates). It's still not as good as just comparing interest + fees though. Option A & B in my example are both variable rates, but Option B is utter garbage. In real life, the fees generally...

@loveallandbeloved I've been asked about it twice this week.

@amarie07 I have literally no idea what you're trying to communicate

@amarie07 The point of the post Your head

@billyc115 CBA looks worse primarily because of the revert rate. The SVR of CBA (or revert rate) is 8.30%, which brings the comparison rate WAY up. Revert rate for UBank is 5.54%, which brings the comparison rate down. For CBA (and most banks), you can just pre-approve a post-fixed interest...

@resjudicata No - it's really not useful. Please stop spreading that. The whole point of the post is to try help people understand so they'll stop pushing this nonsense (not that 'looking into the loan details is useful', but thanks for acting like a knob for no reason). You could compare...

@runeman2215 Comparison rate overexaggerates the relevance revert rate for fixed/intro rates. It also overexaggerates fees, as it's based on a $150,000 loan amount. Please refer to original post for examples.

@ilovemoon Big banks have high Comparison Rates because their fixed rates revert to their SVR (around 8.30% currently). When you setup the loan, you can setup a discount on their revert SVR. For example, a 2.50% post-fixed discount will mean you revert to 5.80%> Your Banker/Broker should be...

@thehappypeanut This is my issue. Theres a lot of 'it still can be useful to quickly narrow products down"; but I agree with you. They should have just legislated that they show all upfront/ongoing/end fees easily instead of the CR.

@oobobbi Thanks! I might add other similar posts about home loan related calculations/theory. There's a lot of somewhat basic things which I think a lot of people are never taught.

@thewayofholiness Elgh. Deleted my comment as I had references to 3 year fixed, not SVR - was going to redo. Now I think your comment is gone. Anyway. Your point is that you can imply fees from the Comparison Rate (which is correct). My point, is it would be more beneficial for the...

@thewayofholiness I think it's specifically not useful for normal people. I added a real-life example to the original post. This is why comparison rate shouldn't be considered by people that don't understand the ins and outs.

@thewayofholiness Most people are not looking at a basic loan. And if they were looking at basic loans, the comparison rate is practically useless anyway ($0 ongoing fees with basic loans and no revert rate). Comparison rate could be useful if done well - but it's just a waste of time usually...

@clough Thank you so much. The kind words and award are both appreciated!

@whoisjrsmith I find it's mostly just a discussion about whether someone should pay off their HELP debt lol

@whoisjrsmith I actually wrote this because I've had a client this week asking for comparison rates. Then today had someone in another post trying to convince everyone that comparison rates are all that needs to be considered. Definitely a good portion of people that still pay attention to them.

Government mandated comparison rate (i.e. the advertised one) is, of course, useless. $150,000 loan amount over a 25 year term is not practical in any way. But I still get a lot of people asking about comparison rates for their specific loan amounts, thinking this will give a good indication...