Choosing a loan should be more personal

For an agreed period of time, you only pay the interest of the loan before you start paying the principal monthly fees.

A payment that’s made in excess of the required regular repayment. This excess payment is then subtracted from the principal.

Repayments made every week or every two weeks. This repayment plan helps you save money by allowing you to make more payments throughout the year, effectively shortening the loan duration.

The act of accessing excess repayments and using them for another purpose. Lenders often set a minimum redraw limit and can charge you for this facility or service.

This term is used to refer to a break from making reduced payments or paying repayments.

This refers to a savings account that’s connected to the home loan. Money entered into this account is subtracted from the home loan balance before calculating the interest. The more money you save, the lower your regular home loan repayments.

This refers to a payment system where the lenders are given permission to debit a person’s bank account to automate the repayment process and to make sure there’s sufficient funds in the account.

A feature for loans that allow you to move to another property without having to refinance.