Home loan terms and definitions

Posted on: 27.06.2016

Introduction

In today’s complex financial world, home loan terms and definitions can be super confusing to the majority of home buyer’s.

We have designed this blog purely to try and help people have a better understanding of home loans before proceeding into an appointment with a mortgage broker.

Home Loan Terms and Definitions

Our webpage has several different pages to check out depending on what you’re looking to educate yourself on –

For Different Loan Types, Click Here.

For Different Loan Features, Click Here.

When you are looking to obtain a home loan you will need to do a home loan application. To see the step by step of an application, Click Here.

For the initial Checklist of Documents needed by the mortgage broker to create your loan application with you, Click Here.

Other Terms and Definitions –

Loan to Value Ratio (LVR) – LVR refers to the proportion of money you borrow compared to the value of the property your purchasing. For example – a purchase price of $400,000, with a loan amount of $320,000 would be an LVR of 80%. (meaning you have a deposit of 20% or in this case $80,000).

Lenders Mortgage Insurance (LMI) – This is an insurance that you pay, which covers the bank if you default on your mortgage. As a general rule, if you borrow more than 80% of the property’s value, you will usually have to pay Lenders Mortgage Insurance. You will find that LMI increases on a sliding scale, the smaller deposit you have the more lenders will charge in LMI.

Summary

Whilst we have tried to ensure this blog is informative as possible there may be a specific question or situation unique to you, that you’d like to run by an experienced professional. At Uprosper, there is no fee for our services so don’t hesitate to click here, and request an email or call from our Managing broker Kirsty Gray for a quick friendly chat.

All the best,

The Uprosper Team