Every term, in plain English
From LVR to debt recycling — Australian mortgage terms defined by people who do this every day.
No jargon. No hype. Just clear answers.
A
The licence that lets a business legally arrange home loans in Australia.
A broker operating under someone else's credit licence — Australia's standard structure.
Your healthcare registration is the credential that unlocks medico lending policies.
How your loan pays down — and why early repayments matter far more.
A one-off processing fee — often waived with the right lender choice.
The regulator whose rules quietly shape how much every Australian can borrow.
The higher rate lenders test you at — not what you actually pay.
Unconditional contract, 10% deposit, no cooling-off. Have finance sorted first.
B
The owners' entity managing strata buildings — and fees reduce borrowing capacity.
Short-term finance covering the gap between buying your next home and selling.
Each May, federal budgets reshape CGT, gearing rules, and first-home schemes.
Protects homeowners if their builder goes under mid-build. Required by state law.
Covers the physical structure — and every lender requires it before settlement.
A licensed professional who represents the buyer, not the seller, in a purchase.
C
Interest added to the loan balance instead of paid in cash.
A lump-sum bonus from a lender — easy to miscalculate in isolation.
The profit tax on selling an investment property. Your PPOR is generally exempt.
Indicative lender approval subject to conditions. Not binding for auctions.
Staged finance for building a home — interest only on what's drawn.
A fully qualified specialist — the strongest lending profile in Australia.
The binding agreement between buyer and seller. Get it reviewed before signing.
The legal transfer of property ownership — a non-negotiable cost at purchase.
A statutory window to back out of a private-treaty contract. Varies by state.
Your borrowing history across the three credit bureaus. Check before applying.
Every lender's internal rulebook — and why answers differ lender to lender.
One loan secured by multiple properties — efficient in theory, painful in practice.
D
Turning non-deductible home loan debt into tax-deductible investment debt — slowly.
The cash portion you bring to a purchase — drives rate, LMI, and eligibility.
An insurer's guarantee substituting cash at exchange. Useful when savings are locked.
The quantity-surveyor document unlocking thousands in investment property deductions.
Your total debt divided by income. Lenders cap it at 6x or 7x.
Two dwellings on one land title. Can double rental yield on a single parcel.
Every check before contract — inspections, strata, title, overlays. Skip at your peril.
E
A sealed-offer sales campaign — buyers submit written bids by a deadline.
Your property's value minus what you owe — the biggest wealth lever most households have.
Borrowing against your home's built-up equity. Structure matters hugely.
A one-off $200–$800 set-up charge. Often waived under the right package.
F
The final stage before consultancy — income sits between registrar and consultant.
5% deposit, no LMI, government guarantee. For eligible first-home buyers.
State cash grant for first-home buyers — usually new builds only.
Save for a deposit through super at concessional 15% tax rates.
Approval required for most foreign buyers of Australian property.
Overseas earnings accepted by many lenders — usually discounted to around 80%.
Lets registrars borrow on their projected consultant earnings, not today's pay.
G
When holding an investment costs more than it earns. Loss is tax-deductible.
When rental income exceeds holding costs. Taxable — but cash positive.
Funds you've accumulated yourself — required when deposit is under 20%.
Applies to new builds, commercial, and developer vacant land — not most resales.
Family equity as extra security — lower deposit, and LMI avoided.
H
Reduces borrowing capacity for most — but not for medicos under our policy.
Government co-owns up to 40% of your home to help you enter the market.
A low intro rate that reverts higher. Check the revert carefully.
Vacant land and a construction contract bundled — two staged settlements.
I
The documents lenders need to confirm your earnings. Varies by employment type.
The price-change measure driving RBA decisions — and your variable rate.
Priced higher than owner-occupier. Structure at origination saves years later.
Repayments cover interest only, not principal. Common for investors.
J
K
L
A revolving credit facility secured by your home. Like a big overdraft.
The insurance you pay when your deposit is under 20%.
Keep your loan when you move. Saves fees, preserves a good rate.
For self-employed borrowers without standard tax returns. Uses alternative evidence.
M
Medical professional? Your terms work differently.
HECS treatment, LMI waivers, future income acceptance — our medico policy rewrites the rulebook for doctors, dentists and allied health.
Specialist lending policy for medical and allied health — LMI waiver, HECS exclusion, future income.
A licensed professional comparing 45+ lenders on your behalf. Free to you.
Covers your repayments if you can't work. Compare with income protection.
Spending over 30% of gross income on repayments. A blunt measure.
N
Australia's federal consumer credit law — sets the best-interests duty.
The theoretical rate that neither stimulates nor restrains the economy.
Lenders funded via wholesale markets — often cheaper, often more flexible.
Car finance from pre-tax salary — reduces tax, affects borrowing capacity.
O
A transaction account that reduces your interest — without locking your cash away.
P
Each payment covers both interest and a slice of principal.
Your medical training stage, from PGY1 intern to PGY5+ fellowship.
Master facility for multi-property investors with shared offset features.
The home you live in. Generally CGT-exempt when you sell.
Final walk-through before handover. Last chance to raise issues.
What you originally borrowed — and still owe. Reduced with each P&I payment.
The standard negotiated sale — offers, counter-offers, cooling-off rights.
Bundled discounts and features for an annual fee. Usually pays from $250K+.
Plans long-term portfolio moves. Complements a broker, doesn't replace one.
Q
Prepares the depreciation schedule that unlocks investment tax deductions.
R
Access extra repayments you've made. Cheaper than offset, worse tax treatment.
5% deposit, no LMI, for first-home buyers in regional areas.
A doctor in advanced specialty training. Strong profile, often undersold.
Some lenders' alternative to LMI. Different structure, similar economics.
S
Pre-tax salary directed to benefits — cuts tax, can cut assessed borrowing.
Victoria's mandatory vendor disclosure document. Review before signing.
Home loans for business owners and contractors. Tougher income verification.
Whether you can afford the loan — and every lender calculates it differently.
The legal completion of a property purchase — when funds and title transfer.
Splits your loan into fixed and variable portions — balance and flexibility.
Ownership of your unit plus shared common areas. Common for apartments.
The lender's headline rate before discounts. Almost no one pays it.
T
Co-ownership with defined shares, inheritable by will. No survivorship.
Protects against title defects, boundary disputes, unauthorised works, and fraud.
Pre-settlement check revealing ownership, encumbrances, and restrictions.
Increases your existing loan. Simpler and cheaper than full refinance.
U
Full, formal loan approval. Required before bidding at auction.
Every expense on top of your deposit — stamp duty, conveyancing, inspections.
V
Qualified professional assessing market value. Independent of seller and lender.
A rate that moves with the market. Maximum flexibility, rate risk on you.
Specialist contracted to hospitals — income splits across multiple streams.
W
Y
Most asked
The terms everyone asks about
LVR
Your loan as a percentage of your property value.
LMI
The insurance you pay when your deposit is under 20%.
Comparison Rate
The true cost of a loan, fees included. Not the headline.
Offset Account
A transaction account that reduces your interest — without locking your cash away.
Debt Recycling
Turning non-deductible home loan debt into tax-deductible investment debt — slowly.
Stamp Duty
The state tax you pay when you buy property. Biggest cost after deposit.
People also ask
The questions behind the terms
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