Interest Rates

When you borrow money for a home loan, lenders charge interest on top of the amount of money you have borrowed (the principal). The interest rate, which is usually quoted as an annual percentage of the loan amount, determines how much money you will need to pay back on your loan.

Interest rates for home loans can either be variable or fixed. Variable interest rates can rise and fall as determined by your lender, while fixed interest rates are locked in for a set period.