Financial products can be confusing, let us help you make sense of it all.

A Break Cost is the calculated amount of the loss which a lender may suffer if you choose to break your fixed interest rate loan contract with them. This loss is passed onto the borrower as a Break Cost or Break Fee.

A mortgage discharge fee is a fee charged by the lender when a borrower pays off their mortgage and the lender releases the mortgage and the property title to the borrower. It is typically a one-time fee and it covers the administrative costs of processing the final payout of the mortgage loan, including closing the mortgage account, preparing and recording the necessary documents, and releasing the property title to the borrower. This fee can vary depending on the lender and the specific terms of the mortgage agreement.

A fixed rate loan is a loan where the interest rate locked in (or fixed) for a specific period of time. It's common to see fixed periods of between 1 - 5 years, although some lenders might offer up to 10 years fixed terms.

Lenders Mortgage Insurance, commonly referred to as LMI, is an insurance which the lender takes out when a borrower borrows more then 80% of the value of the property. The purpose of LMI is to insure the lender against the borrower defaulting on the loan, allowing them to re-coup any losses.

A limited recourse borrowing agreement (LRBA) is a loan arrangement that allows a self-managed super fund (SMSF) to borrow funds to purchase an asset, such as property, while limiting the lender's recourse to that specific asset.

Is a figure (represented as a percentage) which calculates the value of your loan against the value of your property. For example: you have a home loan of $400,000 and your property is worth $500,000, your LVR would equal 80%.

($400,000 / $500,000) * 100 = 80%

When refinancing your home loan you take out a new loan to payout your existing loan. This can be with a new lender or your existing lender.