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What are residential home loans?

What are residential home loans?

Residential home loans are home loans that exist for residential purposes as opposed to commercial gain and are available to those who are buying their own home, purchasing a block of land or building a home to live in.

There are two main types of residential home loans available to choose from, depending on your needs:

  • Variable residential home loans: This type of loan offers a variable interest rate which generally changes as the Reserve Bank of Australia’s (RBA) cash rate moves.
  • Fixed residential home loans: With this type of loan the interest rate is fixed for a certain term, usually up to 10 years.

Residential home loans can also feature a combination of part of the loan fixed and part a variable rate.

To find a home loan that suits your individual needs visit the RateCity home loan comparison page.

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