Its My Home : 2015
IT’S MY HOME - Summer 2015 | 11 COMMON LENDING AND MORTGAGE TERMS AMORTISATION PERIOD The time taken to repay a debt in full through regular repayments. BREAK COSTS OR PREPAYMENT FEES Break costs or prepayment fees may be charged if you switch loan products, make additional repayments to your fixed rate loan or repay the loan in full during the fixed rate period. It is important to ask your lender if these fees will apply to your loan, and to understand if and when they would be payable. BROKERS Many Australians use mortgage brokers (sometimes called finance brokers) to help track down the most suitable home loan. Brokers can offer you a variety of loan options and help you select a loan and manage the process through to settlement. They often receive a commission from lenders for arranging the loan, and may sometimes charge you directly. You should always consider your personal circumstances, and it is wise to shop around. COMPARISON RATE This is a single percentage rate figure that takes into account the interest rate and most fees and charges associated with the loan. The comparison rate can help you to compare the true cost of a loan between lenders. CREDIT FILE Lenders access the information in your credit file to help them decide whether to lend to you. They can also record a default on your file if you make loan repayments late. Every time you make an application for finance, an entry is recorded on your file showing the lender you applied to, the type of finance, the amount applied for, and the date. You can obtain a copy of your own credit file by contacting a national credit reporting body such as: • Veda: www.MyCreditFile.com.au Phone: 1300 762 207 • D&B: www.CheckYourCredit.com.au Phone: 1300 734 806 • Experian: www.experian.com.au/credit-services Phone: 1300 783 684 EQUITY Homeowners often talk about how much equity they have in their house. Property investors often talk about how much equity they have in their portfolio. This is the value of the property (or portfolio) over and above the amount they owe on their loan(s). Unless you have a degree in economics or finance, some of the lending and mortgage terms you may hear when considering buying a property can be confusing. It’s My Home explains what some of the more common terms mean We’ve made it our business to help you. genworth.com.au/lmitoolkit Genworth Financial Mortgage Insurance Pty Limited • ABN 60 106 974 305 • ® Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc and used pursuant to licence • © 2015 Genworth Mortgage Insurance Australia Limited. All rights reserved. LMITA0115 Open doors with LMI. At Genworth we’ve made Lenders Mortgage Insurance simple. So you can buy your home sooner, even with a smaller deposit. Everything you need to know is online. Use the Genworth LMI Toolkit to access videos, calculators, case studies and much more.