Accredited Specialist Lender |
Provides client with various loan options to meet their needs and goals. |
Legal representative |
Your solicitor or conveyancer, who acts on your behalf when a purchase is involved |
Repayment type |
Your choice of paying just the interest on your loan or principal & interest |
Capitalised interest |
A repayment type. No repayment is required until the loan limit is reached. This repayment type generally applies to equity loans. |
Interest in advance |
A repayment type. Only available on fixed rate interest only loans, whereby the borrower pays the interest owing in full for the next 12 months generally for taxation purposes. |
Interest rate type |
Refers to your interest, that is either fixed or variable. |
Fixed rate |
Guarantees the interest rate, during the fixed rate term, irrespective of market movements. |
Variable rate |
Interest rate fluctuates with the market. |
Split loan |
The ability to split your loan between a mix of interest rate types, repayment types and or purpose i.e. owner occupied and investment debt. |
FHOG |
First home owner’s grant |
LVR |
Loan amount (L), divided by the value of the property (V), ratio (R) |
Limit |
Refers to the amount you can effectively redraw up to on your loan at any given time. |
Balance |
Refers to the amount you owe on your loan at any given time. |
Available funds |
The difference between your limit and your balance. Some lenders allow the borrower to redraw these available funds. |
Redraw |
Ability to withdraw any additional repayments made to your loan above the minimum required. |
Early termination fee |
A fee payable by the borrower, should they discharge their loan within a certain timeframe. Can be costly and should be taken into consideration when refinancing |
Break costs |
A fee payable by the borrower should they terminate their fixed rate loan contract prior to the fixed rate term. Can only be determined at time of break. |
Discharge fee |
An administration fee payable by the borrower when discharging their loan. |
Mortgage insurance |
Payable by the borrower yet protects the bank. Generally applies when the borrower requires more than 80% LVR. Some Lo Doc loans may charge mortgage insurance for less than 80% LVR. |
Offset |
Daily credit funds held in your everyday account that reduce the interest charged to your home loan. |
All in one |
The home loan and the everyday bank account act as one facility, as compared to having a separate offset account, which effectively does the same thing. |
Equity loan |
Generally a 30 year interest only facility, ideal for investors who require flexibility and accessibility to cash. Payments are generally capitalised. |
Line of credit |
As per equity loan. This type of facility is required for the All in one loan type. |
Lo Doc loan |
Generally for self employed applicants who cannot meet the lender’s standard evidence of income. |
Rate lock |
Ability to lock your fixed interest rate at the time of application or full approval. Guarantees the rate at settlement will be the same at the time of application /full approval. Fee payable to rate lock. |
Certificate of currency |
Building insurance policy noting your lender as the interested party, required prior to settlement. |
