Mortgage Rate

The mortgage rate is the rate a mortgagor pays on their mortgage. Mortgages can be fixed-rate for life; fixed-to-floating rate, or floating-rate. Mortgage repayments can be interest-only, in which case the mortgagor will need to find the capital to repay the principal at maturity; or amortising, in which case the borrower pays a portion of principal along with interest each month. The mortgage rate depends on a range of factors, including the prevailing level of interest rates, the level at which the lender is able to fund the mortgage, the borrower’s credit history, the lifetime of the mortgage, the repayment format, the loan-to-value, competition, and the level of fees applicable.