Glossary

Debt Consolidation

Debt consolidation is the process of combining debts into one loan. If you have credit card debt and personal loans, for example, you could combine these into your mortgage.Debt consolidation might be an effective way to simplify your finances by making handling repayments easier.

What is principal place of residence / PPOR Australia?

A Principal Place of Residence (PPOR) is a term used to describe when someone resides/lives in a property as their home. In simple terms: it is the home you primarily live in.

Help to Buy Scheme, Australian government shared equity: what to know

Help to Buy is a proposed federal shared equity scheme that lets first-time buyers co-own a home with the government with a 2% deposit.

Negative Gearing

Negative gearing is the word that describes an asset that costs more to maintain than the income it produces. This can be claimed as an expense to reduce the owner’s taxable income.

Shortlist

Two or more loan products that appear to meet the consumer's preferences, needs & objective and financial scenario

Preliminary Credit Assessment

The Preliminary Credit Assessment is a formal documentation of the assessment step in the process of a mortgage broker. It is the part where the broker reviews all your data, documents and needs & objectives ahead of making a formal recommendation

Supporting documents

Documentary evidence required by lenders to verify application data, used by us and lenders to confirm the information that the applicant has provided during their application process, usually grouped into a bundle.

Borrowing Power

The maximum estimated loan size that is likely to be approved for an applicant.

Part X

A personal insolvency agreement – typically for those in more severe debt than those eligible for a Part IX. Relates to people who are declaring as bankrupt

Assessment Rate

An Assessment Rate is the interest rate used when the lender is assessing the serviceability of your loan.

Credit Impairment

In the context of home loans, "credit impairment" refers to a situation where a borrower's creditworthiness is negatively affected, making it more challenging for them to obtain a home loan on standard terms. Credit impairment can result from various financial difficulties, such as late payments, defaults, bankruptcy, or other adverse events that impact the borrower's credit history.

Deposit

A deposit refers to the initial amount of money that a borrower pays upfront when purchasing a home.

Bankruptcy

In the context of home loans in Australia, bankruptcy refers to a legal process where an individual or a business is declared unable to meet their financial obligations, and their assets, including their home, may be used to repay creditors. In Australia, bankruptcy is governed by the Bankruptcy Act 1966. When an individual in Australia faces financial difficulties and is unable to repay their debts, they may declare bankruptcy voluntarily or be forced into bankruptcy through a court order.

Continuing Professional Development (CPD)

Relevant industry training that includes seminars, certificates, workshops, etc that a broker needs to undertake

National Consumer Credit Protection Act 2009 (NCCP)

ACN

Australian Company Number, required for company applications or in some cases Self Employed applicants

Mortgage Adviser

Another name for a mortgage broker.

Part IX

A debt agreement between the consumer and the creditor to which they owe money.

Principal & Interest Repayments

Repayments that contribute to both the principal and interest components of the loan obligations and reduces the principal over the loan term.

Portability

Loan portability allows borrowers to transfer their existing mortgage to a new property when moving home, which can save borrowers from repeating the process of getting a mortgage every time they move.

Requirements & Objectives

What the customer is looking to achieve and expects from the loan. It is a specific term used by ASIC in their regulation of mortgage brokers

Low Doc

Lo Doc is a form of loan type that refers to the amount of documentation that the lender needs to approve a loan

Assets

Items of value owned by a consumer which include real estate, motor vehicles, shares, superannuation, etc.

Aggregator

ABN

Security

Trail commission

Upfront Fee

Mortgagee

Cash out

Bundle

Credit Policy

Credit History

Permanent Resident

Appraisal

Guarantor

Commission

Dependents

Mortgage Servicing

Credit Adviser

White Label

Applicant

Comparison Rate

Lenders Mortgage Insurance (LMI)

PAYG

Application fee

Partial Offset

Bonus

Application

Liabilities

Australian Credit Representative | ACR

Offset Account

Positive Gearing

Cross collateralisation

Suggest

Key Fact Sheet (KFS)

Sale Proceeds

Stamp Duty Glossary

Accreditation

Agents

Top Up

MFAA

Investment

Upfront Commission

Variable Rate

Credit Assistance

Standard Variable Rate

Redraw Facility

Loan Term

Off the Plan Purchase

Specialist Lender

Pre-Approval

Assessment

Lender

Clawback

What is lenders mortgage insurance? | LMI

Valuation

Recommendation

Credit Check

What is a Mortgage Broker?

Substantial Hardship

Risk Fee

Consumer

Discharge Fee

Mortgage Product

Serviceability

Buying/selling off-market? Pros and cons of off-market real estate

Credit Guide

What is UNO?

Arrears

Settlement

Customer

Credit Assistance Quote

Can I salary sacrifice my mortgage?

Capital Gains Tax

Interest Only Repayments

Product Features

Break Cost

Interest rate vs. comparison rate

How and when will UNO contact me?