Buying guide
What are home loan interest rates and how do they work?
A quick, jargon-free guide to the cost of borrowing.
AI summary
Understanding home loan interest rates is key when buying property. These rates, influenced by the Official Cash Rate (OCR), represent the cost of borrowing from a bank for your mortgage.
You can choose a fixed rate for payment certainty over a set term, or a floating rate that moves with the market and allows flexible extra repayments. A split loan combines both. It's recommended to consult a mortgage broker or bank to find the right structure for your financial situation.
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
A bit of both
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