BSB 704-191

Home loan glossary

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Home loan jargon can be confusing

So, we’ve put together a simple glossary to help you understand the terms you might come across.

Home loan terms

- Comparison rate
  A rate that includes some fees and charges, giving you a better idea of the total cost of a loan and allows you to compare this with other lenders.
- Fixed rate
  A rate that stays the same for a set period (e.g. 1-5 years). It gives you predictable repayments.
- Variable rate
  A rate that can fluctuate based on the market. It offers more flexibility, especially if you want to make extra repayments.
A transaction account linked to your home loan. The balance is ‘offset’ against your loan, helping reduce the interest you pay.¹
Allows you to access and use funds from any extra repayments you’ve made to your loan.²
The amount you’re borrowing compared to your home’s value, expressed as a percentage.
Repayments that cover both the amount you borrowed (principal) and the interest charged.
A loan divided into fixed and variable portions, providing some flexibility and stability at the same time.
Repayments that only cover interest for a set period, you don’t pay down the principal during this time.
Switching your home loan to a new loan, either with the same lender or a different one, usually to get a better rate or features.

Disclaimers

¹Available on our Complete and Premier Package Home Loans.
²For our redraw facility, the minimum redraw is $500.