Finance & Mortgages

An Australian Government scheme that guarantees part of an eligible home loan so a buyer can purchase with a deposit as low as 5% without lenders mortgage insurance.

The minimum interest-rate margin APRA-regulated banks add when testing whether a new housing borrower could afford repayments if conditions worsen.

A federal shared-equity program under which eligible buyers use at least a 2% deposit and the Australian Government contributes part of an eligible home's purchase price.

An estimate of the maximum amount a lender may be prepared to lend after assessing income, expenses, debts, dependants and lending rules.

Short-term finance used to cover the gap between buying a new property and receiving the proceeds from selling another property.

A standardised percentage combining a loan's interest rate with most fees to make advertised credit products easier to compare.

A home loan designed to fund construction, usually released in stages as specified building milestones are reached.

A lending measure comparing a borrower's total debt with gross annual income.

A federal scheme allowing eligible people to release certain voluntary super contributions and associated earnings to help buy a first home.

A home loan whose interest rate is locked for an agreed period before it reverts or is renegotiated.

The difference between a property's current market value and the debt secured against it.

The buyer's own funds contributed toward the property price, reducing the amount that must be borrowed.

The Australian Government housing agency that administers home-buyer support programs and finances eligible housing and infrastructure initiatives.

A loan structure where scheduled repayments cover interest but do not reduce principal during the interest-only period.

A form of co-ownership where owners hold the property together and a deceased owner's interest usually passes automatically to the survivor.

A WA Government-backed lender offering selected low-deposit and shared-ownership home loans for eligible owner-occupiers in Western Australia.

A WA shared-ownership product in which the eligible buyer owns a share and the Housing Authority holds the remaining share as co-owner.

Insurance that protects the lender when it approves a higher-risk or high-LVR home loan.

A person who promises the lender that they will meet specified loan obligations if the borrower does not.

A lender's preliminary indication of how much it may lend, subject to conditions and final checks.

A lender's assessment of whether a borrower can meet proposed repayments after allowing for income, living costs, existing debts and interest-rate stress.

The loan amount expressed as a percentage of the property's lender-assessed value.

A licensed intermediary who recommends and helps arrange home loans between borrowers and lenders.

A transaction account linked to a home loan whose balance reduces the loan amount used to calculate interest.

A scheduled payment toward a home loan, commonly including interest and principal or interest only for an agreed period.

Difficulty meeting home-loan repayments and normal living costs, although market reports use different numerical definitions of the term.

A loan where each scheduled repayment covers interest and also reduces the amount originally borrowed.

The home a person genuinely occupies as their main residence rather than holding primarily as an investment.

An assessment of a property's value, often prepared for lending, tax, insurance or transaction purposes.

The Reserve Bank of Australia's target for the overnight interest rate in the money market, used to implement monetary policy.

A loan feature that may let a borrower withdraw eligible extra repayments previously paid into the home loan.

Replacing an existing property loan with a new loan, either from the same lender or a different lender.

An ownership arrangement in which a buyer and an equity provider each hold an economic share in the home, reducing the buyer's required mortgage.

A form of co-ownership where each owner holds a defined share that can pass through their estate.

The gap created when a lender values a property below the price the buyer has agreed to pay.

A home loan whose interest rate can rise or fall during the loan term in line with the lender's pricing decisions.