Redraw
	Offset
	Revolving Line of Credit
	Loan to Value Ratio (LVR)
	Comparison Rate
	Exit Fee or Early Repayment Penalty
	Establishment or Application Fee
	Lenders Mortgage Insurance (LMI)
	Equity

Redraw: Redraw is the funds paid in excess of your minimum loan repayments. For example, if you had to pay a minimum of $500 per month on your loan and you were actually paying $1,200 per month you could redraw $700 per month from your loan, or after five months you could redraw $3,500, if you needed it.
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Offset: The offset facility is a separate account run in conjunction with the home loan account. With 100% offset, we deduct your Savings Account balance from your Home Loan balance and you only pay interest on the reduced amount. For example, if the amount borrowed is $200,000 and the balance of the offset account is $20,000, interest will only be calculated on $180,000.
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Revolving Line of Credit: A Line of Credit Loan offers a convenient way to access your equity. This type of loan combines income, savings and credit into one home loan account that offers a line-of-credit facility secured by your property. You can access funds up to your approved limit for any purpose without making further applications.
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Loan to Value Ratio (LVR): This is your loan balance as a percentage of the value of the property. For example, your LVR will be 50% if you have a $100,000 loan on a property valued at $200,000.
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Comparison Rate: All lenders must disclose a benchmark comparison rate in their advertising of home loans and personal loans. This Comparison Rate is designed to reflect the total annual cost to a borrower of a loan, by expressing the interest and fees into one rate.
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Exit Fee or Early Repayment Penalty: Fee imposed by some lenders if a loan is repaid before the end of its term or if the borrower has sought to refinance with another lender within the first few years of the loan.
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Establishment or Application Fee: Fee which covers basic costs in setting up and processing a loan. It includes the cost of legal fees, valuations, application processing and mortgage documentation preparation.
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Lenders Mortgage Insurance (LMI): Lenders Mortgage Insurance is usually required for loans that exceed 80% of the value of the property. Lenders will typically lend up to 95% of the value of a property if you agree to take out Lenders Mortgage Insurance. This form of insurance is paid by the borrower and protects the lender against default.
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Equity: Equity is the difference between what you owe on your loan and the value of your home or investment property.
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