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Glossary of terms

We've curated a list of glossary terms and definitions to help you debunk common industry terminology. Learn more.

A

  • Advance position
    When paying a home loan, you are advised of the minimum amount you must pay each month, which can be made on a monthly, fortnightly or weekly basis to meet your loan requirements. Paying more than your minimum repayment amount puts you in an advance position.
  • Application fee
  • APR (Annual Percentage Rate)

B

  • Basis points

C

  • Capital growth (also known as capital appreciation)
  • Caveat
  • Comparison rate
  • Construction loan
  • Contract of sale
  • Conveyancing
  • Credit rating
  • Credit report

D

  • Default
  • Depreciation
  • Direct debit
  • Disbursements
  • Discharge
  • Draw down

E

  • Equity
  • Extra repayments

F

H

I

  • Instalment
  • Interest rate

L

  • Lender’s mortgage insurance (LMI)
  • Loan agreement
  • Loan term
  • Loan to value ratio (LVR)

M

  • Mortgage

P

  • Pre-approval
  • Principal and interest
  • Principal and interest repayments
  • Progress payment

R

S

  • Settlement
  • Stamp duty
  • Standard variable rate
  • Strata title
  • Surplus

U

V

  • Valuation
  • Variable rate