Are you a first home buyer? Or perhaps looking at buying another property in Australia? Dealing with a mortgage provider can be an overwhelming experience. You might hear terms you don’t understand, in this post we share a basic glossary of terms as a sort of “cheat sheet” to what sort of mortgages and loans you are looking at, at first. There are a lot more terms, at i Lend Finance Solutions, we can assist you with a deeper understanding of what a loan means for your specific situation and best suit your requirements.



A term used to describe the gradual elimination of a liability aka the repayment of your debt, over a specified period of time. Over the length of your loan your repayments will ‘amortise’ your debt.


Certificate of Title

A record of all current information relevant to a particular property or piece of land, such as current ownership details; any registered encumbrances or caveats; and lot of plan details.



The legal process for the transferral of ownership of real estate.



The amount of money you have as equity in your property when you first take out a mortgage.



The difference between the value of your home and the amount owing on your mortgage.


Holding Deposit

A refundable sum of money paid to the owner of a property. It demonstrates your intention to purchase.


Interest Rate

An interest rate is the rate of interest that a bank or other financial institution (the lender) sets on the cost of lending you money.

There are two main types of interest rates to be aware of: variable and fixed.

A variable interest rate is one that can move up or down at any time, while a fixed interest rate is one that will remain the same over an agreed upon period of time.

Unlike a variable interest rate loan, where minimum repayments vary according to the interest rate, the repayments for a fixed interest loan will always stay the same over the agreed period.



A home mortgage loan enables you to own a home without paying the entire value up front. Over a period of years, the borrower repays the loan, plus interest, until they fully own the property free and clear.


Offset Account

An offset account is used as a way to reduce interest costs on a loan. This is done by linking the mortgage account to the customer’s deposit or transaction account. Any balance in this linked account offsets the loan principal on your mortgage and means that subsequent interest payments will be less. For example, if your mortgage is $500,000 and you have an offset account with $25,000 in it, then you are only charged interest on the first $475,000 of the mortgage, rather than on the full amount.


Whether you’re feeling a bit overwhelmed or just want a more clear understanding of what all these terms mean, if you’re interested in getting a home loan, let our financial specialists at i Lend Finance Solutions help you with our extensive experience and knowledge to make an informed decision and source a home loan that best fits your lifestyle and needs.