Guide
The terms a rate table uses, in the words this site uses them. The same definitions are what the site's AI analyst quotes when asked.
Balance tierBasis point (bp)Bonus rate (savings)Cash rate (RBA)CDR (Consumer Data Right)Comparison rateFixed rateHeadline rateInterest-only (IO)Introductory (honeymoon) rateLMI (Lenders Mortgage Insurance)LVR (Loan-to-Value Ratio)Offset accountPackage (home loan)Principal and interest (P&I)Redraw facilityRevert rateTerm depositVariable rate
A rate that depends on how much money is in the account or how large the loan is. Deposit products often pay different rates on different balance bands, and some pay the top rate only up to a cap. Loans can also price by loan-size bands.
Example. A term deposit might pay 4.45% on $2k-$50k, 4.60% on $50k-$200k and 4.90% above $200k for the same term.
One hundredth of a percentage point. A 25 basis point cut takes a 6.00% rate to 5.75%. Rate moves are quoted in basis points (bp) or percentage points (pp): 0.25pp equals 25bp.
Extra interest paid on top of a savings account's base rate when monthly conditions are met, such as a minimum deposit, no withdrawals, or a linked-account balance. Miss a condition and the account earns only the base rate for that month, which is often close to zero.
The Reserve Bank of Australia's policy interest rate, set at its board meetings. It anchors banks' funding costs, so variable mortgage and savings rates typically move within weeks of a change, though banks are not obliged to pass it on in full.
Australia's open data regime. Its open banking arm requires every ADI to publish machine-readable Product Reference Data: products, rates, fees, features and eligibility, under standards set by the Data Standards Body. All rates on this site are read daily from these public CDR feeds. No customer data is involved.
A rate that folds most upfront and ongoing fees into the interest rate so loans can be compared on cost, calculated under a formula set by the National Credit Code on a standard $150,000, 25-year benchmark. It is legally required in consumer credit advertising in Australia. It excludes some costs (for example government charges and fee waivers) and the benchmark may not match your loan size, so treat it as a guide.
An interest rate locked for a set term (usually 1 to 5 years). Repayments are predictable during the term, but break costs can apply if you exit or refinance early, and extra-repayment allowances are often capped. At the end of the term the loan reverts to a variable rate unless refixed.
The single representative advertised rate shown for a product. Because one product can publish many tiers, the headline is derived: for loans it is the lowest qualifying rate, for term deposits the highest. Your actual rate depends on the tier that matches your LVR, repayment type, term and balance.
Repayments that cover only the interest for a set period (often 1 to 5 years), after which the loan reverts to principal and interest. The balance does not reduce during the interest-only period, and rates are usually higher than P&I. Common for investment loans for cash-flow and tax reasons.
A discounted rate for an initial period (commonly 3 to 12 months for savings accounts, 1 to 2 years for loans) that then reverts to a lower ongoing or higher standard rate. Judge the product on the revert rate as much as the intro rate.
Insurance that protects the LENDER (not the borrower) if the borrower defaults, usually required when the LVR is above about 80%. The premium is paid by the borrower, often thousands of dollars, and can sometimes be capitalised into the loan. A bigger deposit or a guarantor are the usual ways to avoid it.
The size of a home loan expressed as a percentage of the property's value. Most lenders price loans in LVR bands (commonly 60%, 70%, 80%, 90%, 95%, or one flat rate regardless of LVR). A lower LVR means a bigger deposit and less risk to the lender, which generally unlocks cheaper rate tiers. Above roughly 80% LVR many lenders also require lenders mortgage insurance.
Example. A $1,000,000 property with an $800,000 loan (a $200,000 deposit) is an 80% LVR.
A transaction account linked to a home loan whose balance is subtracted from the loan principal when interest is calculated. Money stays accessible while reducing interest, which makes an offset roughly equivalent to earning your mortgage rate tax-free on that cash.
Example. A $500,000 loan with $50,000 in offset is charged interest on $450,000.
A bundle sold for an annual fee (typically $300-$400) that combines a discounted home-loan rate with fee waivers and linked products such as an offset account or a credit card. Worth it when the rate discount outweighs the fee at your loan size.
Repayments that cover both the interest charged and part of the loan balance, so the debt shrinks over the loan term. This is the standard repayment type for owner-occupied home loans and usually gets cheaper rates than interest-only.
Lets you take back extra repayments you have made ahead of schedule. Similar effect to an offset while the money sits in the loan, but access is at the lender's terms and the funds legally sit inside the loan rather than in your own account.
The rate a loan rolls onto when a fixed term or introductory period ends, usually the lender's standard variable rate. Revert rates are often materially higher than the expiring rate, which is why fixed-term expiry is a common refinancing trigger.
A deposit locked for a fixed term (commonly 3 months to 5 years) at a fixed rate. Rates vary by term and often by balance band, and interest may pay at maturity or periodically, sometimes at slightly different rates. Early withdrawal usually costs an interest reduction and requires notice.
An interest rate the lender can move at any time, typically in response to funding costs and RBA cash-rate changes. Offers flexibility (unlimited extra repayments, offset and redraw usually available) at the cost of repayment certainty.