Money

Mortgage Glossary: E & F

It’s time once again to jump into the jargon of the world of home finance. This week we feature letters E & F…

E

Equity

The difference between the value of a house, and the balance of the outstanding amount owing on the home loan.

F

Fixed Rate

An interest rate which is set for an agreed period of time and will not change if the home loan rates increase or decrease

Freehold

Refers to ownership of the land a house was built on and the house itself

Foreclosure

Refers to a legal procedure enforced by the lender. If the borrower defaults on payments, their right to the property is revoked. The lender will recoup lost funds by selling the house at public auction. Also know as repossession.

Finance Charge

Interest charged on the home loan

Further Advance

Refers to registering a further bond over your existing property to obtain further funds on that bond

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