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
A home loan interest rate is the cost of borrowing money from a bank to buy a house. Your choice between a fixed rate (for certainty) and a floating rate (for flexibility) significantly impacts your repayments.
Factors like the Official Cash Rate (OCR), loan size, and term influence your rate. A split loan, combining both fixed and floating portions, offers a balanced approach. Understanding these options helps you structure your mortgage effectively.
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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