A home loan involves more than an interest rate. The way your rate is set, how you repay the loan and the features you choose can all affect its cost and flexibility.
A variable rate can rise or fall, which may change your repayments. Some products offer extra repayments, redraw or an offset account. Compare the fees and conditions as well as the advertised rate.
A fixed rate stays the same for an agreed period, helping you plan repayments during that time. Extra repayments and features may be limited, and break costs can apply if you change or repay the loan early.
A split loan combines fixed and variable portions. It provides some rate certainty alongside the features of the variable portion. Each part has its own conditions, so the split should reflect your needs.
Each repayment covers interest and pays down part of the amount borrowed, helping you repay the loan over its agreed term.
For an agreed period, repayments cover interest without reducing the principal. Repayments generally rise when this period ends, and you may pay more interest overall. This option needs careful consideration.
An offset account is a transaction account linked to your home loan. Its balance can reduce the loan amount used to calculate interest, while keeping your money accessible for everyday use. Availability, fees and the amount offset depend on the loan product.
A redraw facility lets you access extra repayments you’ve made on your home loan, subject to your lender’s conditions. Access limits, fees and processing times may apply, so it’s worth understanding how redraw works before relying on it for future expenses.
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