Disbursements
Costs incurred by the purchaser / borrower by outside parties, such as solicitors
and the State Government, when finalising your mortgage agreement. Charges include
the cost of title searches, registering transfer of title and mortgage at the
Titles Office, and mortgage insurance if required.
DSR-Debt Service
Ratio
The maximum amount of the applicant's weekly, fortnightly or monthly wage that
will support loan repayments over the agreed term. Usually expressed as a percentage,
most lenders set a maximum DSR of 30%-40%, of income depending on the type of
loan.
Establishment Fee
See Application Fee above.
Exit Fee
A fee imposed by some lenders when a borrower is looking to refinance a loan
with another lender within the first few years of the loan. The amount varies
between institutions and loan products.
Interest
The charge (cost) on the money being borrowed,.
If you are the lender then it is the return earned
on the funds invested or lent.
Loan Repayment Capacity
Your fixed debt commitments
divided by your available income and is usually
expressed as a percentage.
Loan to Valuation Ratio
The amount
of the loan as a proportion of the property value,
and is usually expressed as a percentage
Mortgage
The contract that is drawn up between a
borrower and lender giving the lender a conditional
right to the property as security for the money
being lent.
Mortgagee
The person lending you the
money and taking the property as security
Mortgagor
The
person borrowing the money and providing property
as security
It's
not in your glossary of terms?
If you still need an answer, and it's not provided
here, simply e-mail us with your enquiry. We will
give you the information, and update our Glossary
of Terms. E-mail us: info@moneyst.com.au
