Home loans,
in plain English.

Rates & loan features

An upfront charge for applying for or setting up a loan. It may also be called an establishment fee. Whether it applies, and the amount, depends on the product.

Budget & deposit

A rate used to test whether you could manage repayments. It can include a buffer above the loan’s interest rate to allow for changes in circumstances. It is not necessarily the rate you will pay.

People & support

When providing credit assistance to consumers, mortgage brokers must act in the consumer’s best interests. Ask your broker to explain how the recommended loan fits your needs, costs and priorities.

Budget & deposit

The amount a lender may be prepared to lend after assessing your income, expenses, debts and circumstances. An online estimate is a starting point; it is neither approval nor a substitute for your own household budget.

Rates & loan features

Charges that may apply when you repay or change a fixed-rate loan before its fixed period ends. The amount can vary. Ask the lender for a current quote before deciding to sell, refinance or repay early.

Buying & settlement

Short-term finance that can cover the gap between buying your next property and selling your current one. The repayment arrangements, sale deadline and costs need checking with the lender.

Rates & loan features

A percentage combining the interest rate with certain loan fees and charges, using stated loan-size and term assumptions. It helps compare costs, but does not include every charge or put a value on features such as an offset account.

Compare the same loan amount and term, then check the fees and features that matter to you.

Buying & settlement

Finance for building a home or a major renovation, commonly released in stages as work progresses. These releases are called progress payments. The lender’s conditions determine when funds are paid and how repayments work during the build.

Buying & settlement

The agreement setting out a property purchase, including the price, deposit, settlement arrangements and any special conditions. Have your conveyancer or solicitor explain it before you sign.

Buying & settlement

The legal work involved in transferring property ownership. A licensed conveyancer or solicitor can review the purchase documents and help complete the transfer. This is a separate role from arranging your home loan.

Buying & settlement

A limited period in which an eligible buyer can withdraw from a property purchase under applicable law. In Victoria, exceptions include auction purchases and certain sales close to an auction. Time limits, notice requirements and a deduction from the refund can apply.

Ask your conveyancer whether you have this right before relying on it.

Budget & deposit

A record of your credit history, including credit accounts, applications and repayment information. Lenders can use it when assessing an application. Check your report and raise any incorrect information with the relevant provider or reporting body.

Budget & deposit

A number calculated from information in your credit report to indicate credit risk. Scores and scoring methods can differ between providers. Your score is only one part of a lender’s assessment.

Budget & deposit

Your contribution towards the purchase price. The deposit payable under the sale contract is not always the same as the total contribution needed for your loan. Allow separately for buying costs and the savings you want to keep.

Buying & settlement

The process of releasing a lender’s mortgage over a property. It may be needed when selling, refinancing or finishing repayment. A discharge authority starts the lender’s process; it is not itself proof that the mortgage has been released.

Budget & deposit

The property’s value less the debt secured against it. Equity can change as the property value or debt changes. It is not cash in your account, and you cannot assume a lender will let you borrow all of it.

People & support

Difficulty meeting your credit or loan repayments. Contact your lender’s hardship team early to discuss your circumstances and possible repayment arrangements. The assistance available depends on the lender’s assessment of your situation.

Budget & deposit

A government payment for eligible first-home buyers. In Victoria, the grant is for qualifying new homes, including eligible builds. It is separate from stamp-duty concessions and government loan-guarantee schemes; each has its own conditions.

Rates & loan features

An interest rate agreed for a set period. That period is usually only part of the total loan term. Extra-repayment limits and break costs may apply, so check the conditions before making changes.

Budget & deposit

Evidence of a saving pattern that a lender may require as part of a deposit assessment. Accepted funds, evidence and timeframes differ between lenders. Some lenders may consider rental history; a gift is not automatically treated as genuine savings.

People & support

Someone who agrees to meet obligations under another person’s loan if the borrower does not. The guarantee may cover part or all of the debt. Assets offered as security can be at risk, so independent legal advice matters.

Rates & loan features

The percentage used to calculate the interest charged on a loan. Home-loan rates are usually quoted per annum, or p.a., meaning per year. The interest rate alone does not describe all loan costs.

Rates & loan features

Repayments that cover interest for an agreed period without reducing the principal through those scheduled payments. When the loan moves to principal-and-interest repayments, the required repayment usually rises because the principal must be repaid over the remaining term.

Rates & loan features

A loan used for an investment purpose, such as buying a rental property. Loan approval does not establish whether a property is a suitable investment. Obtain separate tax and property advice where needed.

Rates & loan features

A standard-format home-loan summary showing costs and repayments for a selected amount and term. It helps you compare loans on a consistent basis, but does not replace checking the complete contract and product conditions.

Budget & deposit

Insurance protecting the lender against an eligible loss if the borrower defaults and the property sale does not cover the debt. The borrower usually pays the cost. It does not protect your repayments, and you can still owe a shortfall after a claim.

LMI may apply with a smaller deposit. Requirements and any exemptions depend on the lender and loan.

People & support

A guarantee with liability limited as specified in its documents, rather than simply guaranteeing the whole loan. Check exactly what the limit includes, any additional interest or costs, and how release works. Limited liability does not remove the risk to secured property.

Rates & loan features

The agreement between borrower and lender that sets out the loan’s terms and obligations. Read the rate, fees, repayment requirements, security and conditions before accepting. Ask for an explanation of anything unclear.

Rates & loan features

The agreed period for repaying a loan. For the same balance and rate, a longer term generally lowers each repayment but increases total interest. It is different from the time a fixed interest rate lasts.

Budget & deposit

The loan amount expressed as a percentage of the property value accepted by the lender. LVR = loan amount ÷ accepted property value × 100. The lender’s valuation and treatment of financed costs affect the final assessment.

Illustration: a $640,000 loan against an accepted value of $800,000 gives an 80% LVR. This is not an approval or a universal lending limit.

Buying & settlement

The legal security a lender takes over property for a loan. People often use “mortgage” to mean the home loan itself, although the debt and the mortgage securing it are distinct.

People & support

A person who helps you understand loan options and deal with lenders through the application process. Ask about the lenders they can access, how they are paid and why a recommendation fits your circumstances.

Buying & settlement

Buying a property before it is completed, based on the plans and contract. Completion timing, the finished property and lender requirements need careful checking before you commit.

Rates & loan features

A separate account linked to an eligible loan. Its balance reduces the amount on which loan interest is calculated, according to the offset arrangement. The money remains in the account; it has not been paid off the loan.

Check the offset percentage, fees and that the account is correctly linked.

Budget & deposit

An indication that a lender may lend an amount, subject to conditions and further checks. Often called conditional approval, it is not a guarantee of finance. The property and your circumstances still need to satisfy the lender.

Rates & loan features

The amount borrowed that remains to be repaid. Principal repayments reduce that debt; paying interest alone does not.

Rates & loan features

Scheduled repayments that pay interest and reduce the loan principal. They are designed to repay the loan over its agreed term, provided you meet the repayment requirements.

Rates & loan features

A loan feature that may let you access extra repayments you have already made. Access, available amounts, fees and restrictions depend on the loan conditions. It works differently from holding money in a separate offset account.

Rates & loan features

Replacing an existing loan with a new one, with your current lender or a different lender. Compare the total costs, features and remaining term. A lower repayment can partly reflect taking longer to repay the debt.

Rates & loan features

The rate a loan moves to when a fixed-rate or introductory period ends, unless you agree to another arrangement. Check the contract and review the next rate before the change takes effect.

Buying & settlement

A Victorian seller’s disclosure document with information such as title matters, outgoings and zoning. It is often called the vendor statement. It does not replace a building inspection or legal review of the purchase documents.

Buying & settlement

An asset used to secure a loan, commonly the property being purchased. If the borrower defaults, the lender may enforce its rights against that asset, subject to the contract and legal requirements.

Budget & deposit

A lender’s assessment of whether you can meet the proposed loan repayments alongside living expenses and other commitments. The lender applies its own assessment rules, including allowances for risk. Having a deposit or equity does not establish serviceability.

Buying & settlement

The stage when the property purchase is completed: the balance of the price is paid and the transfer of ownership is arranged. Your conveyancer or solicitor coordinates the legal steps with the other parties and lender.

Rates & loan features

A loan divided into portions, commonly one with a fixed interest rate and another with a variable rate. Each portion has its own conditions. The split does not remove the risks or costs of either rate type.

Buying & settlement

A state or territory tax associated with a property transfer. In Victoria it is called land transfer duty. The amount and any exemption or concession depend on the property, transaction and your eligibility under the current rules.

Buying & settlement

A condition in a purchase contract dealing with finance approval. Its protection depends on the exact wording, dates and notice requirements. It is not the same as loan pre-approval; have your conveyancer or solicitor explain the clause before signing.

Budget & deposit

Formal loan approval after the lender’s required assessment, often also called final approval. You still need to accept the loan documents and meet the requirements for funds to be released. It is not the same as settlement.

People & support

A guarantee without an agreed monetary cap limiting it to a specified part of the debt. It may expose the guarantor to the whole guaranteed debt and related amounts under the documents. Obtain independent legal advice on the actual obligations.

Budget & deposit

The portion of property equity a lender may allow you to borrow against. It depends on the lender’s valuation, permitted LVR, existing debt and assessment of your repayments. Accessing equity normally means taking on additional debt.

Buying & settlement

An assessment of a property’s value used by a lender in its credit decision. It can differ from the purchase price or an agent’s appraisal, which can affect the amount the lender is prepared to advance.

Rates & loan features

An interest rate that can change during the loan. The lender sets the rate, and changes can affect repayments. A cash-rate change does not mean every lender will adjust its rates by the same amount.