Buying guide
What are home loan interest rates and how do they work?
A quick and easy guide.
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AI summary
Understanding home loan interest is crucial when buying a house. Interest is the cost of borrowing, influenced by factors like the Official Cash Rate (OCR), your loan amount, and its term.
You can choose between a fixed rate for repayment certainty or a floating rate, which changes with the market. Floating rates offer flexibility but carry risk, while fixed rates provide stability. It's also possible to split your loan between both types to balance these factors.
What you’ll learn:
What are home loan interest rates, and why do banks charge them?
You need to be aware of home loan interest rates when budgetting for your home.
How are mortgage interest rates calculated?
You'll need to decide if you'd prefer a fixed or floating interest rate.
Fixed and floating interest rates explained
Floating interest rates
Fixed interest rates
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