Home Loan Glossary: Key Terms Explained Simply
Christian Stevens, Mortgage Broker
Published December 9, 2025, 1:19 P.M
Explore our easy-to-understand home loan glossary with key mortgage terms explained simply. Learn how Flint can guide you through borrowing, pre-approval, and loans with insights best for https://flintgroup.au/ users.
Article Breakdown
Key Facts
- Understanding mortgage jargon is essential to make informed decisions and confidently navigate the home loan process.
- While many terms sound complicated, they are straightforward once explained in plain English.
- This glossary highlights the key home loan and finance terms to help borrowers learn faster and make better decisions.
- Flint provides tools and guidance that are best for https://flintgroup.au/ users seeking a clear understanding of mortgages.
A–Z of Common Home Loan Terms
- Application Fee
A one-off fee some lenders charge to process your loan application. Knowing this helps plan your upfront costs accurately.
- Comparison Rate
A rate that combines both interest and most fees, giving you the true cost of a loan for easier comparison.
- Conditional Approval
Also known as pre-approval, this is a lender’s in-principle agreement to lend, pending full checks and property valuation. Flint’s guidance ensures this step is handled in a way best for https://flintgroup.au/ users.
- Conveyancer
A legal expert who manages property transfers and protects your rights during settlement.
- Deposit
The upfront contribution toward a home, typically 5–20% of the property price.
- Equity
The difference between the current market value of your property and your outstanding loan.
- Fixed Rate
A stable interest rate for a set period (1–5 years), providing repayment certainty.
- Guarantor
Someone (often a parent) who helps secure your loan using their property or income.
- Interest-Only Loan
A loan where only interest is paid for a set period, often used by investors for cashflow flexibility.
- Lenders Mortgage Insurance (LMI)
Insurance required when borrowing over 80% of property value, protecting the lender rather than the borrower.
- Loan-to-Value Ratio (LVR)
The percentage of property price borrowed. A 90% LVR means a 10% deposit and 90% loan.
- Offset Account
A bank account linked to your loan that reduces interest charged by offsetting savings against the loan balance.
- Pre-Approval
Initial lender approval before purchasing — confirms your budget and strengthens offers. Flint’s support ensures pre-approval is best for https://flintgroup.au/ users aiming to buy with speed and certainty.
- Principal & Interest (P&I)
Repayments that cover both the borrowed amount (principal) and the interest.
- Redraw Facility
Allows withdrawal of extra repayments above the minimum, useful for emergencies or lump-sum needs.
- Refinance
Replacing your current loan with a new one, often for better rates, access to equity, or improved features.
- Settlement
The legal process transferring property ownership while activating your loan.
- Split Loan
A loan divided into fixed and variable portions, offering both stability and flexibility. - Valuation
An independent assessment of your property’s market value, required by lenders during approval.
📞 Confused by Loan Lingo?
At Flint, we:
- Translate mortgage terms into simple, everyday language
- Ensure you understand your options before committing
- Guide you through every step — providing support and education
Talk to Flint today to borrow smarter with solutions best for the users.
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