Glossary of Terms

Fees incurred when ending a fixed-rate loan early.

Payment received by brokers from lenders for facilitating loans​​.

A loan interest rate including fees, providing a truer cost of borrowing.

Legal processes involved in transferring property ownership.

Evaluation of a borrower’s financial situation to determine loan eligibility.

Failure to meet loan repayment obligations.

The portion of a property’s value owned outright, minus any mortgage debt.

A loan with an unchanging interest rate over its term.

The cost of borrowing expressed as a percentage of the loan amount.

The percentage of a property’s value financed through a loan.

Insurance protecting the lender if the borrower defaults, often required for high LVR loans.

A loan specifically for purchasing real estate, secured by the property itself.

A bank account linked to a home loan to reduce interest by offsetting the balance.

The original sum of money borrowed in a loan.

A lender’s conditional approval for a loan, indicating borrowing capacity.

Replacing an existing loan with a new one, often to secure better terms.

A feature allowing borrowers to withdraw extra repayments made on a loan.

The finalization of a property purchase and transfer of funds.

The length of time over which a loan is scheduled to be repaid.

Variable-Rate Mortgage – A loan with an interest rate that fluctuates based on market conditions.