What is Principal and Interest?
Latest home loans news
Mortgage stress affecting 40% of households, despite property market aflush with stimulus
Billions of dollars’ worth of government and bank support has failed to put a lid on mortgage stress, soaring to its highest level ever.
Lenders slash mortgage rates while Australians top up offset accounts
Average home loan interest rates have declined by between 33 and 45 basis points over the last quarter, according to the Reserve Bank of Australia (RBA). While this has reportedly led more Australians to refinance their mortgages and top up their offset accounts, fewer new home loans have been recorded.
The principal part of your loan refers to the actual amount that you have borrowed. Interest is then charged on this amount at the rate set by your lender – this is the interest portion of the loan.