Additional Repayments
Extra funds paid into the loan over and above the minimum prescribed repayments.

All In One Loan
A loan, generally variable, that allows you to deposit all of your income into the loan account and then withdraw money from the account for all your day to day purchases and transactions. The longer spare funds stay in the account, the greater the interest savings.

Basic Variable
A variable home loan at a reduced rate but generally with fewer features than a standard variable.

Break Costs
Costs incurred when a loan is paid off before the end of its term. Generally applies to fixed loans.

Capped Loan
A loan where the interest rate is not allowed to exceed a set level for a period of time but, unlike fixed rate loans, is allowed to drop.

Combination Loans
Where various loans come under the same banner to form one loan. May have a portion variable, fixed or even a portion as a line of credit. Also known as split loans.

Credit Limit
Maximum amount the borrower can use at any one time.

Daily Interest
Interest calculated on a daily basis - therefore varies according to daily account balance.

Default
The rate a loan rolls/moves automatically at the end of any fixed period.

Establishment Fees
Lending body fees which may or may not be charged to set up a loan.

(Loan) Features
Any attributes associated with the loan e.g. redraw facility combination loan facility, portability.

Fixed Interest
An interest rate set for an agreed term.

Interest Only
Usually a short-term arrangement whereby payments are made on the interest only, not the principal.

Introductory Loan
A loan is offered at a reduced rate for an introductory period (usually no longer than 15 months) to new borrowers.

Line of Credit
A flexible loan arrangement with a specified ceiling to be used at a customer's discretion.

Loan to Valuation Ratio
(LVR) the ratio of the amount lent to the valuation of the security (usually the house).

Mortgage
A form of security of a loan usually taken over real estate. The lender, the mortgagee, has the right to take the real estate if the mortgagor fails to repay the loan.

Mortgage Broker
A person or organisation marketing numerous loans from a panel of lenders. They offer a service where they will select the best loan or loans for borrowers from this selection.

(Lenders') Mortgage Insurance
A form of insurance taken out by the lender to cover themselves in the event that the borrower defaults on their loan and the sale of the property is unable to cover the outstanding amount. Mortgage insurance premiums are usually payable by the borrower when the amount borrowed is over 80 percent of the property value and sometimes at lower loan to valuation ratios.

Negative Gearing
Where the return of an investment is insufficient to meet the interest costs of the loan used to fund the investment.

Off The Plan
The purchase of property, often an apartment, before it has been completed i.e. after only having seen the plans, not the finished product.

Offset Account
A savings account linked to your mortgage in such a way that the interests earned on your savings is applied to reduce the interest on your mortgage.

Ongoing Fee
Any loan maintenance fee charged regularly over the life of a loan.

Portability
Portability: where a new property may be substituted as security for an existing loan.

Principal and Interest Loan
A loan in which both the principal and the interest are paid during the term of the loan.

Redraw Facility
A loan facility whereby you can make additional repayments on your loan and then access these extra funds when necessary. They will often have limitations such as a minimum redraw amount and a fee for each withdrawal.

Residential Investment Loan
A loan granted to purchase a property intended for investment purposes (for example, to be rented out) as opposed to owner-occupied purposes.

Security
An asset that guarantees the lender their borrowing until the loan is repaid in full. Usually the property is offered to secure the loan.

Settlement Date
Date on which the new owner finalises payment and assumes possession.

Stamp Duty on Transfer
A State Government tax assessed on the selling price of the property.

Standard Variable
A variable home loan, usually with comprehensive features (as opposed to a basic variable). This is often the variable rate fixed rates roll to at the end of their term.

Strata Title
This title gives you ownership of a 'unit' of a larger building which you may sell, lease or transfer at your discretion. Also entitle you to membership of the body corporate.

Stratum Title
A title that records your ownership of a 'unit' of a larger property. Unlike a strata title, the owner becomes a shareholder in the company that manages the common area, not just a member.

Tenants in Common
The equal or unequal holding of property by two or more persons. If one party dies, the property is divided according to law.

Valuation
A report as required by the lender, detailing a professional opinion of the property's value.

Variable Interest Rate
A rate that varies in accordance with the rates in the marketplace.