Actual Interest Rate A rate including the current interest rate and any monthly or one off, up front fees.

Amortization Repayments to a loan which lead to its reduction over a pre determined time.

Capital Gain The profit made when an asset is sold for more than the original purchase price.

Collateral The Security or Property being used to secure the loan.

DSR The Debt Service Ratio.

Equity The difference between what you owe on your home and what it is worth.

Fixed Rate A rate fixed of an amount for a fixed period of time. For the fixed term the interest rate will not change not change regardless of trends.
 

Interest Only Loans Loans that require the investor to only pay the interest portion of the loan and the loan principal itself is not reduced during this time.
 

Liabilities Total amount of debts owed.
 

Liquid Assets Assets that can be turned into cash quickly.
 

LMI Lenders Mortgage Insurance
 

LVR Loan To Value Ratio - The loan amount expressed as a percentage of the property value.
 

Mortgage A legal document pledging property as security for the repayment of a loan.
 

Mortgagee One who lends the money.
 

Mortgagor One who borrows the money. The name on the title of the property.
 

NSR Net Service Ratio
 

Principle And Interest Loans that require the owner to pay both interest and principle payments thereby reducing Loans the amount owed on the property at a regular rate.
 

Security The Collateral or Property being used to guarantee the loan.
 

Serviceability The ability of the borrower to meet new commitments and still maintain a standard of living. Each lender has its own criteria.
 

Split Loans Loans with more than one interest rate (e.g. part fixed, part variable) or more than one product assigned to it (e.g. Line of Credit and Rate Saver).