What is Interest Rate?
The interest rate is the annual percentage a lender charges you to borrow. Can be fixed, variable or split. Influenced by the RBA cash rate, lender funding costs, margin, loan features, LVR and borrower profile.
Why it matters for you
Don't chase headline rates alone. A slightly higher rate with better offset, no annual fee, or fast processing often delivers better total value. Always compare on comparison rate and total cost over 3–5 years — not headline.
Last updated: April 2026