First Home Buyers Hub

We understand that buying your first home is a massive milestone, that’s why we have created these simple guides to help give you the confidence in understanding what it means to become a homeowner.


 

Below is how we define the following terms and this is what they mean when we are talking to you. 


 

Glossary of Home Buying Terms

At QBANK, our Home Lending Specialists are here to guide you every step of the way. Below is some useful information to help you understand what we are talking about. 

This is a fee charged by the Lender to cover the time and costs associated with processing the loan.

This rate helps you work out the true cost of the loan. It includes the interest rate and most fees and charges, reducing this to a single percentage figure. What is included and the method behind this calculation is set by law.

A solicitor or conveyancer will assist you with the transfer of title, property and title searches and contract reviews that are required.

This is a report that outlines your credit history and relevant public records. This is used as part of the credit review process in your application. We receive our credit report about you from Equifax Australia.

This is the interest calculated daily on your loan and charged at a set interval.

An amount which is put down towards your mortgage. This often shows the Lender that you are a good saver and you can manage your finances.

The difference between what the outstanding value of your mortgage is and the market value of your property.

An interest rate that stays the same for a fixed term (1-5 years for example)

Building and Pest inspections are recommended and should be completed before the sale goes unconditional, to ensure that the house is structurally sound with no termites or pests.

The organisation or person who provides funds on the basis that this will be paid back in accordance with the terms agreed upon (usually including interest and final repayment date).

Will need to be paid if your lending is above 80% of the purchase price. This covers the financial institution against any shortfall they may incur if your property is required to be sold, as a consequence of not making your payments

This is a ratio or percentage of the loan amount against the value of the property purchased. (E.g. A loan of $405,000 is divided by a $450,000 property value, would result in a LVR of 90%).

This is a term given to the loan on your property. A Mortgagee refers to the Lender and the Mortgagor is the borrower (you).

A bank account which is directly linked to your mortgage and can reduce the interest you pay. With this account, loan interest is charged on the difference between the offset account balance and the loan amount.

Refers to the total amount borrowed on the loan.

A feature on certain loans that allows you to access any extra repayments that you have made on your loan.

The asset held against the loan acting as protection against potential loss for the Lender. 

Changing ownership titles on a property, which will depict when the property legally becomes yours.

This is a State Government tax which is paid when you purchase or transfer property.

An assessment taken as an estimate of the value of the property being purchased, this is often completed by an independent professional valuer.

Unlike fixed, Variable interest rates are subject to fluctuation during your loan period. The bank can change these rates at any time. This decision may be influenced by changes to the Reserve Bank of Australia’s cash rate and lending market movements.

The seller of the property you are going to purchase.


 

Pre-approval

Once you understand your budget and how much you can borrow, you can apply for pre-approval. This shows your borrowing power and could help you secure a property before someone else. It is valid for 3 months and provides you with conditional loan approval for a home loan subject to specific conditions, giving you the confidence when searching, enquiring, and making offers on properties.

When you apply for your pre-approval our lenders take into account your personal financial situation, we review your budget including your debts and your assets, your credit history and we consider the deposit you are contributing. It is important to note that a pre-approval is subject to valuation of the chosen property that must be acceptable to the bank and other conditions may apply.


 

Family Pledge

A family pledge on your home loan involves a family member guaranteeing part of your home loan with the equity from their home. This will enable you to purchase your property without the need of a large deposit and you can avoid paying Lenders Mortgage Insurance (LMI).


 

First Home Buyer Products

Choose from our range of fixed interest rate or variable rate home loans specific to our first home buyers.

Home Loan Calculators

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Credit Eligibility criteria, terms and conditions, fees and charges apply.

* Not available for investment purposes

+ Loan must be for a new loan

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