What is a home loan interest rate?
When you borrow money in the form of a home loan from a lender or bank in order to buy property, the total amount you borrow is called the principal. This entire amount will need to be repaid to the lender over a fixed period of time (called a term).
A home loan interest rate is the percentage rate the lender charges to loan the principal to you. Over the life of the loan, you repay the full principal amount you owe to the lender, plus the rate of interest that your home loan product specifies. Home Loan interest rates can be fixed, variable, or a combination of both.