Interest rates

What the OCR Means To You

A change in the Official Cash Rate can leave you feeling a bit richer or a bit poorer depending on which way the pendulum has swung.

Costs

Even though the idea is to free money up to use, there can also be high costs involved with equity release products.

Glossary: equity
The amount you would get if you sold an asset and paid back any money you owed on it. For example, if you have a house worth $350,000, and a $300,000 mortgage, your equity in your house is $50,000.

Fees and interest rates

The price for a home loan and all the features it offers comes in the form of interest and fees.

Glossary: interest
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.

Types of mortgage

When you're choosing a home loan, there are two big decisions you need to make: