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 to buy a house, influenced by factors like the Official Cash Rate (OCR) and your loan size.
You can choose a fixed rate for payment certainty or a floating rate for more flexibility with extra repayments. A split loan combines both, offering a middle ground. Understanding these options is key to finding a home loan structure that suits your financial situation and helps you manage your repayments 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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