Understanding the jargon
BEAT strives to offer products that are easy to understand. If you want help with home loans or mortgage tips, then you've come to the right place. We have listed and explained some terms that you may come across throughout our website, to help you to understand our products thoroughly.
Appreciation
When the market value or price of a property increases over time.
Arrears
An unpaid, overdue debt or payment.
Assets
All the assets, including land, home, car, shares and furniture that are owned by a person.
BEAT guarantee
We promise that our RateBEATer home loan will beat your home loan interest rate.†
BEATman
Hero to the masses, hater of high interest rates, all round good guy - your new best friend!
Certificate of Title
An official legal document detailing who owns the land and any restrictions that may be placed on dealings with the land.
Comparison rate explained
The comparison rate is an indicative interest rate which takes into consideration the full cost of a loan including all upfront fees, ongoing interest rates and other known fees.
To provide information regarding the cost of lending, taking into consideration establishment and ongoing fees, this enables customers to compare the true cost of different loans and lenders.
The comparison rate takes into consideration the costs associated with setting up a loan including the normal interest rate, the loan approval fee and any other upfront or ongoing fees. It excludes government fees and charges, because they are standard across all loans. The resulting comparison rate can then be compared against the comparison rates for other types of loans and loans with other lenders.
With a BEAT home loan the comparison rate includes the interest rate and any upfront loan fees where applicable.
Contract
A legally binding agreement between two or more parties.
Conditional approval
An initial approval given on a home loan application, subject to further information and documentation being supplied by the applicant.
Credit history
A record of how an individual has borrowed money and has repaid debt. This helps to determine whether a potential borrower is likely to be able to repay their loan in a timely manner.
Debt servicing ratio
A calculation used to determine if you can afford the amount that you want to borrow. It is based on your debt expenses shown as a percentage of your monthly income.
Interest rate
The rate at which interest is calculated as a percentage of the money you have borrowed (your home loan).
Lenders' mortgage insurance (LMI)
Lenders’ mortgage insurance protects lenders if a borrower can't pay their loan back and the property sells for less than the amount owing. By using lenders’ mortgage insurance, lenders are able to pass on risk to a mortgage insurer, which enables them to maintain competitive rates and products for their customers. If lenders’ mortgage insurance applies, we can add this on to your home loan.
Loan
The amount of money BEAT will lend you.
Loan-to-value ratio (LVR)
The ratio between the loan amount and the valuation of the property.
Mortgage
A legal agreement that secures the property you own against your home loan. If you default on your home loan the lender can repossess your property under the terms of the mortgage.
Mortgagee
The lender who has been granted a mortgage over your property.
Mortgagor
That's you, because you are borrowing the money for your mortgage.
Settlement
The date on which the loan agreement has been finalised and you receive the money from the lender.
Valuation
A report as required by the lender, outlining an independent valuer's opinion of a property's value.
Variable interest rate
A rate that changes in accordance with the rates in the marketplace.
