• Home loan terms and mortgage definitions

  • The language and jargon used in purchasing a property can be very confusing. Here's an A-Z glossary of commonly used words and phrases, with easy-to-understand definitions for each one.
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  • M


    • Mandatory comparison rate

      An interest rate that includes both the headline interest rate and the fees and charges relating to a loan. It is designed to help consumers identify the true cost of a loan and compare it with other loans.

    • Margin

      The difference between the lender's interest indicator rate (or other reference rate) and the rate actually charged to borrowers.

    • Maturity

      The date a debt or investment must be paid in full.

    • Max LVR

      The maximum loan to valuation ratio. This means the amount you can borrow expressed as a percentage of the valuation of the security (usually the property you are buying). For example, 90% LVR means you can borrow up to 90% of the valuation of the property.

    • Max term

      The maximum length of a home loan or a specific portion within that loan.

    • Maximum loan amount

      The maximum amount that can be borrowed.

    • Min fixed amount

      The minimum amount that can borrowed at a fixed rate of interest.

    • Min lump sum payment

      The minimum amount that can be repaid as a lump sum.

    • Min redraw amount

      The minimum amount that can redrawn from a loan at any one time.

    • Monthly fees

      The fees charged to cover or partially cover the lender's internal costs of administering the loan each month.

    • Mortgage

      A form of security for a loan usually taken over real estate. The lender, the mortgagee, has the right to take the real estate if the borrower, the mortgagor, defaults on the loan repayments. A mortgage over land is registered or noted on the Certificate of Title to that land.

    • Mortgage Stamp Duty

      State government tax calculated on the borrower's loan amount.

    • Mortgage term

      The length of time over which you agree to pay back your mortgage, usually up to a maximum of 30 years.

    • Mortgagee

      The lender of funds.

    • Mortgagor

      The person borrowing money under the terms of a mortgage.