The world's local bank
A-B | C-D | E-F | G-H | I-J | K-L | M-N | O-P | Q-R | S-T | U-V | W-Z
A to B
Amortisation
Payment of debt in regular instalments of principal plus interest, as opposed to interest-only repayments.
Amortisation period
The number of months it will take to repay a loan completely. The maximum period is usually 25 years for a home mortgage.
Annual Percentage Rate (APR)
A measure of the cost of the loan including interest and fees, expressed as a yearly percentage rate
Assets
What you own, including the value of your property, cash, securities etc.
C to D
Captial gain
The profit you make when you sell an asset for more than its cost.
Down payment
The money paid up front on the purchase of a property at the beginning of a loan term.
Drawdown
The act, by the bank, of making the money you borrowed available to you, usually by crediting your account.
E to F
Equity
The difference between the price at which an asset can be sold, minus the total debt listed against it.
Fixed rate loan
A loan taken at an interest rate which is fixed for a set term, regardless of changes in the market.
G to H
Guarantor
A person, usually related to the borrower, who guarantees that the loan is fully repaid.
I to J
Interest
A charge for money advanced or lent by the lender.
K to L
Liabilities
Your outstanding debts, or what you owe.
Loan repayment capacity
Your monthly loan repayments divided by your gross income expressed as a percentage.
Loan to valuation ratio
Your loan amount divided by the bank's valuation of your assets expressed as a percentage.
O to P
Principal
The actual amount borrowed or owed on a loan.
S to T
Security
Assets pledged to ensure the repayment of a loan.
Term/Tenure
The length of time of a loan.
U to V
Uncommitted monthly income
Your available income after all monthly expenses, including loan repayments, have been deducted from your gross monthly income.
