Glossary

Equity

The amount of an asset not subject to any Lender's interest e.g. property worth $300,000, with a mortgage loan of $150,000 - equity is $150,000.

Equity Loan (or Line of Credit)

A loan usually secured by the proportion of the home in which one has equity. It usually operates like an overdraft, where the borrower has a set credit limit to which they can draw funds.

Establishment Fee

Also called Application Fee. Fee which covers basic costs in setting up loan from initial interview to loan drawdown. Some lenders choose to absorb this fee.

Exit Fee

Fee imposed by some lenders where the borrower has sought refinance with another lender within the first few years of the loan.