Glossary

Legal Fee

May be charged where an outside party is used to prepare bank documentation.

Liabilities

A person's debts. There are also "Contingent Liabilities", which are Liabilities that are contingent on something happening e.g. where a guarantee is acted upon through a loan default. In other words, the liability may or may not come into effect.

Loan Stamp Duty

The State Government's stamp duty on the mortgage taken to secure a loan. Also referred to as "Mortgage Stamp Duty". Some States offer exemptions on this for first home buyers.

Loan to Value Ratio (LVR)

Refers to the maximum amount lenders will approve against the value of any property taken as security for your home loan. For example if you wish to purchase a property worth $100,000 the lender may approve a loan for 80% of the property value. It will then be up to you to provide the remaining 20% plus costs (mortgage registration and stamp duty etc).