To agree to the terms and conditions of an offer or contract on a property.
Reducing the amount of your home loan over time by paying both principal and interest repayments.
Also called an Establishment Fee. The fee charged by a lender to lodge a loan application.
Also known as a home-to-home loan. A type of loan that enables you to buy or build a new home before selling your existing one, without paying two mortgages at the same time.
An agent or broker who represents the buyer in a property purchase.
The true interest rate of a home loan when all fees are also taken into account. It lets you compare different loans which have different fees.
When you buy or sell a house, you need to appoint a conveyancer or solicitor to make it official (arrange ‘settlement’), and ensure you legally own your new home.
The difference between what you owe on your home, and what your home is currently worth.
The annual gross income of an individual applicant or the combined annual gross income of multiple applicants.
Equal holding of a property between two or more people. If one party dies, their share passes to the survivor or survivors.
If you want to borrow more than 80% of the property’s value, you have to pay mortgage insurance (LMI). Mortgage insurance is a one-off payment, usually made when you settle on the property. The amount you pay depends on the loan amount, the value of your property and how much of the purchase price you want to borrow (e.g. 95%). It protects the lender in the event that you can’t meet your repayments and the home is sold with the debt outstanding.
Loan to value ratio (LVR) is an assessment of lending risk that lenders take into consideration before approving a mortgage. This is calculated by dividing the loan amount by the assessed value of the property.
This is the maximum purchase price set by Government legislation.