Glossary of terms
| Term | Description |
|---|---|
| 100% offset | You pay lower interest on your loan when you link your loan to a savings account. The balance in the savings account offsets the loan principal. This reduces the amount of interest calculated, so the term of your loan can be reduced. For example, if the principal on the loan is $150,000 and there is $5,000 in the transaction account, then interest is only calculated on $145,000. |
| Low doc (documentation) loans | A loan process for self-employed people who do not have the standard financial statements required to get a loan. |
| Redraw | Enables the withdrawal of funds from a loan if the borrower has funds in excess of his/her required repayments |
| Stamp duty | A charge imposed by the Government on a financial transaction. E.g a stamp duty is payable by the buyer on a transfer of land when a property is sold. The amount differs for each state and territory. |
| Application fee | A fee you pay when you apply for a loan. |
| Basis points | One basis point equals 0.01% interest. For example, 25 basis points equals 0.25%. |
