Glossary of terms
| Additional repayments | Any payments you make over and above the minimum payment set out in your home loan details document. Making additional repayments reduces the term of your home loan. |
| Amortisation | The gradual reduction over time of the amount borrowed plus interest through regular payments. |
| Break Costs | A fee charged when you change from a fixed rate to another type of rate before the end of the fixed rate period or if you make a principle reduction or discharge your mortgage while it is a fixed rate; or when you pay a greater amount other than the minimum repayment while it is a fixed rate. See your loan contract and general terms and conditions for more information. |
| Certificate of Title | A certificate detailing who owns the land and any restrictions on it. |
| Collateral security | Additional asset or security supplied by a borrower to obtain a home loan. You risk losing the asset if the home loan is not paid back in accordance with the terms of the contract. |
| Comparison interest rate | The annual percentage rate of a home loan plus all other fees you need to pay added onto it. |
| Conveyancing | Legally transferring a property from one person to another. |
| Exchange of contract | The point at which the buyer and seller swap documents and start the purchase/sale process. |
| Execution of contract | When you sign your contract. |
| Fixed rate | An interest rate is locked in for a defined period of time and will not change during that time. |
| Interest | The cost of a home loan. This is the amount that you have to pay back on top of the amount you originally borrowed. |
| Interest only loan | A home loan where only the interest is paid off for an agreed term. |
| Lenders mortgage insurance (LMI) | Insurance that protects the lender should the home loan not be repaid in full. |
| Minimum repayment required | The amount you are contractually required to pay each month (or fortnight) in order to pay off your home loan in the agreed time. |
| Mortgage | A home loan that's secured against real estate. |
| Mortgagee | The lender of the funds |
| Mortgagor | The person(s) who borrow the funds |
| Principal | The original amount you borrow, not including interest. |
| Principal and interest loan | A loan where the repayments cover both the original amount borrowed ('Principal') and the interest that will be charged over the term. |
| Re-amortise | To work out the minimum payments needed to pay back the outstanding balance of your home loan over the remaining period (if the amount borrowed has changed). |
| Redraw facility | A flexible home loan feature allowing you to borrow back money that you have already paid on your home loan. |
| Repayment holidays | A break from repayments when you need the money for something else. |
| Settlement | The date on which you receive the money from the lender. |
| Term | The amount of time that the home loan must be repaid within. |
All applications are subject to the normal credit approval criteria set by individual lenders. Full terms, conditions and schedule of fees are set out in the relevant loan contracts. Terms and conditions, including fees and charges, may be varied or introduced in the future. Fees and charges are payable. Government charges and taxes may apply. Click here to view full terms and conditions of the offer.
