Glossary

Think of it as your loan slowly disappearing over time. If you amortise over 30 years, that’s how long it will take to fully pay off.

If you’re in arrears, it means you’ve fallen behind on repayments. Staying on top of your loan helps avoid unnecessary stress and extra costs.

Something valuable that you own, like your home, car or even a business. Assets can help secure a loan or build your financial future.

A charge that may apply if you end a fixed-rate loan early. Always check the terms before signing up!

Money or assets available for investment or business operations. Can be used to fund business growth, acquisitions or large purchases.

A single percentage that includes both the interest rate and common fees, giving you a clearer picture of the loan’s real cost.

A loan designed for businesses to purchase property, equipment or fund expansion.

Lenders assess your financial situation – income, debts, and credit history – to decide if they’re comfortable lending to you.

Your upfront contribution when buying a home or asset. The more you put down, the less you need to borrow.

When your home loan is fully paid off or you switch lenders, your loan is “discharged,” meaning you’re free from that financial commitment.

The difference between your home’s value and what you owe on your loan. More equity means more financial security.

Unlocking the value of an asset, such as a property, to access funds for investment or business use.

A loan with a set interest rate for a specified period, providing stability for financial planning.

The cost of borrowing money, usually expressed as a percentage of your loan balance.

A one-time insurance payment required if your deposit is less than 20%. It protects the lender, not the borrower.

A measure of how much you’re borrowing compared to the property’s value. A lower LVR usually means better loan terms.

A home loan – plain and simple.

A bank account linked to your home loan that reduces the interest you pay by offsetting your loan balance.

An indication of how much you might be able to borrow, based on your financial situation. It’s a great tool for house hunting with confidence.

The original loan amount before interest is added. Every repayment reduces your principal (and the interest you owe).

Tailored financial services for HNWIs, including bespoke lending solutions, wealth management and investment strategies.

Switching to a new loan, whether for a home, business or equipment, to secure better terms, a lower rate or features that better suit your needs. This can be done with your current lender or a new one.

A loan backed by collateral (such as property or equipment), often resulting in lower interest rates.

Settlement refers to the final stage in the loan process where the funds are disbursed and the legal transfer of ownership or debt obligation is completed. For home loans, this means the property ownership is officially transferred to the buyer. For personal or business loans, it means the approved loan amount is paid to the borrower or directly to a third party (such as a vendor or creditor). At settlement, all necessary documents are signed, any outstanding fees are paid and the loan officially begins.

A government tax on property purchases. It varies by state and can be a significant cost, so budget for it early!

An estimate of a property’s worth, often done by a professional before a loan is approved.

An interest rate that fluctuates over time based on market conditions, such as changes to the Reserve Bank’s cash rate. Variable rates can offer flexibility, allowing borrowers to take advantage of lower rates but also posing the risk of increases.

The funds available to cover a business’s short-term expenses, ensuring smooth daily operations.