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 crucial for Kiwi buyers. This is the cost of borrowing for a house, influenced by factors like the Official Cash Rate (OCR).
You can choose a fixed rate for payment certainty or a floating rate, which offers flexibility for extra payments but can change with the market. A split loan combines both. It is always recommended to consult a bank or mortgage broker to find the best 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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