Beginner's guide to home loans

Undo-ing the jargon used in home loans

Hot topics

Hot topic #
01

What is LMI?

LMI, also known as Lender’s Mortgage Insurance, protects lenders in the event that aborrower can’t repay their mortgage.
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Hot topic #
02

What is a redraw facility?

A redraw facility gives you access to additional repayments that you’ve made, over and above the minimum monthly repayments.
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Hot topic #
03

What is a variable rate home loan?

It contains an interest rate that changes throughout the term of the loan, depending on a number of different factors.
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What is your borrowing power?
Borrowing power is how much a lender is willing to loan you based on several factors.
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What is a comparison rate?
A comparison rate combines the interest rate with extra fees, offering a transparent view of a loan's total cost.
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What does the term interest mean?
Interest represents the cost you pay to borrow money from a lender. There are four factors that determine how much you pay.
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What does the term principal mean?
Principal is the amount of money you’re looking to borrow from your bank or lender, which you’ll then need to pay back
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What is a principal and interest home loan repayment?
It involves paying both the loan's principal and the interest in a home loan repayment.
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What is a mortgage prisoner?
A mortgage prisoner is someone who lacks the equity or serviceability requirements to refinance their home loan.
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Calculations are not a loan approval. Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions will be set out in our loan offer, if an offer is made.

^ Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. This discount is applied to each loan that you have with Unloan. If you have multiple loans (e.g. one investor and one live-in loan), they will each have a discount calculated based on when you settled each loan. Unloan may withdraw this discount at any time.

*Comparison rate is calculated on a $150,000 secured loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.