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Advertised Rate - the interest rate offered by a lender, not including any other fees and charges.

Comparison Rate - the "true" interest rate as it incorporates upfront and ongoing fees and charges payable over the life of the loan. By looking at the comparison rate, you can compare different lenders easily.

Interest - the amount charged by a lender for the use of borrowed money.

Interest Only - a loan where only interest is paid for an agreed period of time. This means that no principal is paid in the repayment for that period.

Interest Rate - the percentage of the loan, used to calculate the interest that is to be paid.

Loan Balance - the total amount you owe on your home loan.

Lender's Mortgage Insurance (LMI) - insurance you pay to the lender on loans with high risk to protect lenders from defaults. LMI is normally payable by the borrower when the LVR exceeds 80%.

Loan Value Ratio (LVR) - the percentage borrowed compared to the value of the property. Example - If the property is worth $250,000, and you borrow $200,000, then the LVR is 80%.

Maximum Loan Amount - the maximum loan amount that can be borrowed based on the borrower's disposable income.

Minimum Loan Amount - the minimum loan amount that a lender is able to loan.

Offset Account - a facility that is linked to a home loan. The balance of your offset account reduces the amount owing on your loan.

100% Offset - an offset account where 100% of the balance offsets your loan account. This type of account enables you to have every cent of your money working to reduce your mortgage.

100% Offset Redraw Facility - loans.com.au’s offset redraw facility is a facility linked to your loan account that offers unlimited free redraws with no minimum withdrawal.

Principal and Interest - a loan in which both principal and interest are repaid during the agreed term of the loan.

Principal - the amount owing on a loan in which interest must be paid, the principal portion of the loan repayment reduces the overall loan balance on the loan.

Redraw - available with variable loan products, to enable a borrower to make repayments on their loan, and to redraw this money if they need the funds again.

Refinance - to change mortgage providers and arrange for a new loan to be taken over the same property.

Stamp Duty - a tax imposed by State Government on the purchase price of a property.

Title Fees - charges imposed by State Government to conduct a title search on property ownership. A title search is necessary on both refinance and purchase settlements.

Transfer Fees - charges imposed by State Government to transfer the registered mortgage on title.

Valuation - an estimation of something's worth conducted by a registered professional.

Variable Rate - an interest rate that can change on a periodic basis.


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This information has been prepared without taking into account your individual objectives, financial situation or needs. You should, before acting on this information, consider its appropriateness to your circumstances.

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