Application Fee
A one-off fee some lenders charge when you apply for a home loan. It covers the cost of processing your application.

Appraisal / Valuation
An estimate of a property’s value to make sure the bank isn’t lending more than it’s worth.

Asset
Something valuable you own (like a car, savings, shares, or property) that supports your borrowing power.

Comparison Rate
Shows the true cost of a loan by combining the interest rate with most fees and charges.

Conditional Approval / Pre-Approval
The lender’s early sign-off to lend a certain amount, based on initial checks.

Construction Loan
A special loan for building a home, where funds are paid in stages as the build progresses.

Deposit
The amount you contribute upfront—usually 5% to 20% of the purchase price.

Equity
The difference between your property’s value and what you still owe on the loan.

Fixed Interest Rate
The interest rate is locked in for a set time, meaning your repayments stay the same.

Guarantor
A family member who supports your loan by offering their own property or savings as security.

Interest-Only Loan
You only pay the interest (not the loan amount) for a period—commonly used to reduce repayments.

Lenders Mortgage Insurance (LMI)
Insurance you pay if your deposit is less than 20%. It protects the lender, not you.

Loan Term
How long you’ll take to repay the loan—usually 25 or 30 years.

Offset Account
A savings or everyday account linked to your home loan. The more money you keep in it, the less interest you’re charged.

Principal
The amount you borrow, not including interest.

Redraw Facility
Lets you withdraw any extra repayments you’ve made if you need the money later.

Refinancing
Switching loans or lenders for a better deal, to access equity, or change features.

Settlement
The final stage in buying property—when the loan is activated and ownership transfers to you.

Stamp Duty
A government tax on buying property. The amount depends on your state and the price.

Variable Interest Rate
The interest rate can change with the market—your repayments may go up or down.

Capital Gains Tax (CGT)
Tax on the profit made when selling an investment property.

Depreciation
A tax deduction based on wear and tear of the building and fixtures.

Interest-Only Loan (Investment Use)
Common among investors—reduces short-term repayments while relying on property value growth.

Negative Gearing
When your rental income is less than expenses. The shortfall can reduce your taxable income.

Positive Gearing
When rent covers more than your costs. You may earn income—but you’ll also pay tax on the profit.

Rental Yield
Annual rental income as a percentage of property value—a handy performance measure.

Portfolio Lending
A way to manage multiple properties under one loan or lender.

First Home Guarantee (FHBG)
Buy your first home with as little as 5% deposit—without needing to pay LMI.

Regional First Home Buyer Guarantee
Like the FHBG but only for homes in regional areas.

First Home Owner Grant (FHOG)
A one-off payment from your state government, often for newly built homes.

Stamp Duty Concessions / Exemptions
Many first-home buyers qualify for discounted or waived stamp duty depending on state rules.

Super Saver Scheme (FHSSS)
Lets you use voluntary super contributions (up to $50k) towards your deposit.

Eligibility Criteria
Each scheme has rules around income, property value, and previous home ownership.

Alt Doc Loan
Used when traditional income proof (like payslips) isn’t available. Accepts BAS, bank statements, or tax returns.

BAS (Business Activity Statement)
Shows your business income and GST. Often used in loan assessments.

Low Doc Loan
A type of loan requiring less paperwork, but may come with tighter terms or higher rates.

LVR (Loan to Value Ratio)
The loan amount compared to the property’s value. Lower LVRs = stronger application.

Income Averaging
Lenders average 1–2 years of income to assess variable earnings.

Accountant’s Letter
Sometimes used to confirm self-employed income in the absence of other documentation.