Application Fee

An upfront fee charged by a lender to process your home loan application.

Arrears

When loan repayments are overdue or missed.

Asset

Anything you own that's worth money, like a car, savings, or property.

Bridging Loan

A short-term loan to cover the gap between buying a new property and selling your existing one.

Building Inspection

A report that checks the condition of a property before you buy it, often includes structural and safety checks.

Capital Gains Tax (CGT)

Tax you may pay when you sell an investment for more than you paid for it.

Comparison Rate

A single percentage that includes both the interest rate and most fees; helps compare the true cost of different loans.

Conditional Approval

When a lender agrees in principle to give you a loan, based on the info you’ve provided; not yet a final commitment.

Conveyancer

A licensed specialist who manages the legal paperwork, property checks, and settlement process when you buy or sell property. In many states, conveyancers are the professionals who handle this role.

Credit Assessment

A lender’s evaluation of whether you’re likely to repay the loan based on your financial situation.

Credit Report

A summary of your credit history including loans, repayments, defaults, and credit enquiries.

Debt Consolidation

The process of bringing multiple debts together into a single repayment structure, which may assist with consistency of repayments and provide a clearer overview of financial commitments.

Default

When a repayment hasn’t been made for a period of time and the lender reports it to credit agencies.

Deposit

The upfront amount contributed by the borrower when purchasing a property. The required amount varies depending on the lender and product chosen.

Discharge Fee

A fee charged when you fully pay off a loan and request the lender to release its mortgage over the property title.

Drawdown

When money from a loan is accessed and paid out, often used in construction loans for staged payments.

Early Repayment Adjustment (ERA)

The fees and costs a lender may charge when you repay part or all a fixed-rate loan before the end of the agreed term.

Equity

The difference between the value of your home and what you still owe on your loan.

Exit Fee

A fee charged for closing your home loan early. Now banned on newer loans but may apply to older ones.

Extra Repayments

Paying more than the minimum required each month; can help reduce interest and shorten the loan term.

Family Guarantee

When a family member uses their property as security to help you qualify for a loan.

Fixed Interest Rate

An interest rate that stays the same for a set period, often 1–5 years, which makes repayments predictable.

Guarantor

A person who agrees to take responsibility for a loan if the borrower can't repay, often a parent helping a first-home buyer.

Home Loan Pre-Approval

An estimate of how much you may be able to borrow, based on a preliminary assessment of your financial situation.

Interest Rate

The cost of borrowing money, expressed as a percentage of the loan amount.

Interest-Only Loan

A loan where you only pay interest for a set period; repayments are lower, but you’re not reducing the principal.

LVR (Loan-to-Value Ratio)

The percentage of the property's value that you’re borrowing; a higher LVR means a lower deposit.

Lender’s Mortgage Insurance (LMI)

Insurance paid by the borrower when the deposit is less than 20%; protects the lender if the borrower defaults.

Line of Credit

A flexible loan that allows you to borrow up to a set limit as needed; interest is usually only charged on the amount used.

Loan Agreement

A formal contract between you and the lender outlining the terms and conditions of the loan.

Loan Term

The length of time over which you agree to repay your loan, typically 25 to 30 years.

Low Deposit Loan

A home loan available to borrowers with a smaller deposit, usually involves paying LMI.

Mortgage Broker

A qualified adviser who works with multiple lenders to help you find a loan that suits your goals.

Negative Gearing

When the cost of owning an investment property is higher than the income it generates; the loss can sometimes be claimed as a tax deduction.

Offset Account

A transaction account linked to your home loan; the money in it offsets your loan balance and reduces interest charged.

Owner Occupier

Someone who buys a property to live in, not rent out.

Pest Inspection

A pest inspection is a professional assessment of a property to identify the presence of pests, potential infestations, and any damage they may have caused.

Principal

The actual amount you borrow, before interest is added.

Principal & Interest Loan

A loan where your repayments reduce both the original amount (principal) and the interest.

Rate Lock

A feature that allows you to lock in a fixed interest rate for a short time while your loan is being processed.

Redraw Facility

A loan feature that lets you access extra repayments you’ve made, if needed.

Refinancing

Replacing your current home loan with a new one, usually to get better terms, rates, or features.

Repayment Holiday

A temporary pause or reduction in repayments, usually due to hardship or lender arrangement; conditions apply.

Settlement

The final step in the property transaction where legal ownership is transferred and funds are paid.

Solicitor

A qualified lawyer who can provide broader legal services, including property transactions. In some states, solicitors rather than conveyancers manage the paperwork, checks, and settlement for buying or selling property. (See also: Conveyancer)

Split Loan

A loan divided into two parts (one fixed, one variable) to balance stability and flexibility.

Stamp Duty

A government tax on property purchases, calculated based on the purchase price and state or territory rules.

Switching Fee

A fee charged by some lenders if you change your loan type, such as from variable to fixed.

Title Search

A legal check to confirm the property’s ownership, restrictions, or debts before purchase.

Valuation

An assessment of a property’s market value, usually conducted by a licensed valuer on behalf of the lender.

Variable Interest Rate

A rate that can rise or fall over time; your repayments may change with market conditions.