Not all home loans with cheap interest rates are cheap. A home loan offered at a lower rate does not necessarily mean it is better than a home loan with a higher rate. Why? It’s because the true cost of the loan is only revealed when you add up all the fees and charges associated with the loan. The home loan with a lower rate can turn out to be costlier so you need to be wary of it. A great tool that can help you identify the true cost of the loan is the comparison rate. It is a combined rate of interest rate, fees, and other charges added to the loan. With the comparison rate, you are not only comparing the interest rates of the loan so it does help you make a good judgment in determining which is the better loan for you.