What is comparison rate warning?
The comparison rate warning is a statutory disclosure every Australian home-loan ad must carry — it explains that the comparison rate is computed on a $150,000 / 25-year benchmark and may not apply to loans of other sizes or terms.
Australian consumer-credit law (National Consumer Credit Protection Act 2009) requires every advertised home-loan rate to be accompanied by a 'comparison rate warning' in close proximity. The standard wording is: 'WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates.'
The warning exists because the comparison rate is computed on a fixed benchmark ($150,000 loan, 25-year term, secured, no special features), and the impact of fees and ongoing charges scales differently with loan size. On a $1,000,000 loan, a $395 annual package fee has a much smaller effect on the effective rate than on a $150,000 loan — yet the published comparison rate uses the smaller-loan basis.
Treat the comparison rate as a like-for-like sorting tool, not a quote for your specific loan. The actual cost of your loan depends on your actual loan size, term, fees, and feature usage. Calculators on this site let you input your own numbers for a more accurate comparison.
WARNING comparison rate · NCCP comparison rate disclosure
- Comparison rate — Comparison rate is a statutory percentage that folds standard upfront and ongoing fees into the headline rate on a $150,…
- Professional package loan — A package loan bundles a home loan with a transaction account and credit card under one annual fee (commonly $395-$495) …
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.