Nila Sweeney

While the comparison rate can be a useful tool Your Mortgage has gone even further and developed its own method to uncover the true cost of a mortgage.

The team at Your Mortgage has worked out the 'true cost' of the 28 three-year fixed rate products from the banks and 67 products from non-bank lenders in our books, by taking into account each and every fee, including upfront, ongoing and deferred establishment fees as 22 August 2008.

By working out how much a given loan will cost you after a range of time periods - three, five and 10 years - we show you the impact that these fees can have on the total cost of your mortgage. By adding all fees to the cost of principal & interest (P&I), we calculate the true cost of a mortgage over three, five and 10 years. This month, we have based our calculation on a loan amount of $300,000 at 80% LVR taken over 30 years.

And the winner is...

One Direct's 3-year fixed rate loan took the Editor's Choice award for the overall best value three-year fixed loan in the bank category thanks to it's low interest rate of just 8.79% and a default rate of 8.61% as at 22 August 2008. With total upfront fee of just $60 and nil ongoing fees, borrowers could save a hefty $23,545 over the 10 year period, compared to the average cost of the average 3-year fixed rate loan in our books.

MyRate's three-year fixed grabbed the top spot in the non bank category boosted by its low fees and interest rate of just 8.70%. After taking into account all the Over the five year period, this product could save you $7,917 compared to the savings you make with the average loan in our books.

For the complete list of top-ranking three-year fixed rate products, read the latest issue of Your Mortgage magazine, on sale now.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan