LVR and DTI
Loan-to-value ratio (LVR) compares the loan with the property value. Debt-to-income (DTI) compares debt with gross income. Both are measures or policy settings, not approval results.
Fixed, floating, revolving, and offset
A fixed rate gives a stated rate for a fixed period, subject to its terms. Floating or variable rates can change. Revolving credit lets the balance move within a limit. An offset structure may reduce interest using linked balances; lender rules differ.
Refixing, refinancing, and restructuring
Refixing changes the rate period with the same lender. Refinancing usually moves lending to another lender. Restructuring changes the loan arrangement, such as splits, limits, or repayment type.
OCR, special rate, and serviceability
The Official Cash Rate (OCR) is set by the Reserve Bank and can influence funding and retail rates. A special rate is an advertised rate with eligibility conditions. Serviceability is the lender’s assessment of whether repayments may be supported under its assumptions.
Cashback, break cost, valuation, and equity
Cashback or a cash contribution is offered under conditions. A break cost may apply when fixed lending ends early. A valuation is an opinion of property value for a stated purpose. Equity is the difference between value and debt; usable equity depends on lender policy and the wider application.
Evidence categories to organise
- Ask what the term means in this lender’s documents
- Check the rate period and expiry
- Separate headline rate from eligibility
- Ask about fees, break costs, and cash contributions
- Confirm how the lender applies LVR, DTI, and serviceability
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.