How a home loan (bond) works
A bond is a loan from a bank, secured by the property. You pay a deposit if you can, and the bank lends the rest. You repay it monthly over a term, often 20 to 30 years.
The interest rate is usually linked to the prime lending rate, so your repayment can move when rates change. A longer term lowers the monthly amount but raises the total interest you pay.
Banks look at your income, your existing debt, your credit record and the property itself. A bond originator can apply to several banks for you at once.
Use our bond repayment calculator to see what a price, deposit and term mean for your monthly budget before you view homes.