Mortgage and home loan terms without the jargon

A lender fee that may apply when establishing or assessing a loan.

A cost that may apply when a fixed-rate loan is repaid or changed before the fixed period ends.

Short-term finance used when a new property is purchased before an existing property is sold.

A rate combining interest and certain fees using standard assumptions to help compare loans.

A lender approval subject to stated requirements being met.

A loan that generally releases building funds in stages as work progresses.

A record containing information about credit accounts, applications and repayment history.

The buyer’s funds contributed toward the purchase price, separate from other purchase costs.

The process of releasing a lender’s mortgage when a loan is repaid or refinanced.

The difference between a property’s value and debt secured against it.

An interest rate set for an agreed period, subject to the loan contract.

Funds that meet a lender’s requirements for being saved or held over a specified period.

A person who promises to meet specified loan obligations if the borrower does not.

A required repayment covering interest without reducing principal during the interest-only period.

Insurance that protects the lender against certain losses if a borrower defaults.

The loan amount expressed as a percentage of the lender’s accepted property value.

An eligible linked account whose balance reduces the loan amount used to calculate interest.

The amount borrowed, excluding interest and other charges.

A repayment that covers interest and reduces the amount borrowed.

A staged payment made during construction after an agreed work milestone.

A loan feature that may allow access to eligible extra repayments under lender rules.

Replacing or restructuring a loan, often through a new lender or new facility.

Property or another asset a lender can rely on under the loan contract.

The lender’s assessment of whether a borrower can afford the loan under its rules and assessment rate.

The legal and financial completion of a property purchase or loan change.

A loan divided into separate portions, commonly fixed and variable.

A state or territory tax that can apply to property transactions, subject to current relief and exemptions.

The portion of property equity a lender may allow a borrower to access after its limits and assessment.

An interest rate that can change during the loan term.