Glossary M

This is the date by which the loan must be paid in full.

Maximum loan amount
After assessing your disposable income, deposit and the purchase price of a property, you will be advised of the maximum amount you can borrow.

Minimum repayment
This is the least amount you are required to pay each month on your loan.

Mortgage insurance
If you are borrowing more than 80% of the property value the bank/lender will most likely request that mortgage insurance is taken out. It is important to note that this form of insurance protects the lender and not you, the borrower.

Mortgage offset account
This is a savings account that runs in conjunction with a home loan where the interest earned on that account is applied to the interest that is paid on the loan. By doing this, you are depositing extra money on to the mortgage, which you can access when needed, and reduce the interest that is charged on your mortgage

Mortgage protection insurance
Also know an income protection insurance, this insurance is often recommended as it covers you if you are unable to meet repayments due to serious illness or redundancy

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