Mortgage Broker Melbourne. Mortgage Broker WILLIAMSTOWN. Call us for your finance needs and you'll see that our service and performance is second to none. We work hard to keep our clients happy.   

Mortgage Broker Melbourne - Accession Finance

Accession Finance brokers are authorised credit representatives of BLSSA Pty Ltd (Australian Credit Licence No. 391237)

Timothy Reynolds is an authorised Credit Representative No. 472472;

Tom Langlands is an authorised Credit Representative No. 496232;

Antoinette Blake is an authorised Credit Representative No. 500958; 

Evelyn Clark is an authorised Credit Representative No. 502891;

The information contained on this website should not be deemed to be advice, please contact our brokers for advice that is tailored to your circumstances. 

WITH THE RBA DROPPING THE CASH RATE TO A NEW RECORD LOW ON OCTOBER 1ST, THERE'S NEVER BEEN A BETTER TIME TO REVIEW YOUR LOAN. 

CHAT

WHY LIMIT YOUR OPTIONS? THESE ARE JUST SOME OF THE LENDERS WE COMPARE

Glossary

If you don't know the difference between an offset account and a redraw facility, a professional package or a basic loan - you are not alone. Navigating your finance needs is difficult enough, without having to worry about learning what seems to be a whole new langauge. Here are some of the common terms you will likely see while you consider your options. 

 

GLOSSARY OF TERMS

 

Assets - something of value that you own. It could be cash or something that can be converted into cash such as property, vehicles, equipment and inventory.

Balloon payment - a final lump sum payment due on a loan agreement. Loans with a larger final 'balloon payment' have lower regular repayments over the term of the loan.

Basic Loan

Budget - a listing of planned revenue and expenditure for a given period

Chattel Mortgage - is similar to a hire-purchase agreement although the business owns the asset from the start. Chattel mortgages require regular ongoing payments and typically provide the option of reducing the payments through the use of a final 'balloon' payment.

Collateral - see Security.

Credit - a lending term used when a customer purchases a good or service with an agreement to pay at a later date (e.g. an account with a supplier, a store credit card or a bank credit card).

Credit limit - a dollar amount that cannot be exceeded on a credit card or the maximum lending amount offered for a loan.

Credit rating - a ranking applied to a person or business based on their credit history that represents their ability to repay a debt

Credit history - a report detailing an individual's or business' past credit arrangements. A credit history is often sought by a lender when assessing a loan application.

Debt - any amount that is owed including bills, loan repayments and income tax.

Debt consolidation - the process of combining several loans or other debts into one for the purposes of obtaining a lower interest rate or reducing fees.

Debt finance - money provided by an external lender, such as a bank or building society.

Facility - a predetermined arrangement such as an account offered by a financial institution to a business (e.g. a bank account, a short-term loan or overdraft).

Fixed interest rate - when the interest rate of a loan remains the same for the term of the loan or an agreed timeframe.

Gross income - the total money earned by a business before expenses are deducted.

Gross profit - (also known as net sales) the difference between sales and the direct cost of making the sales.

Guarantor- a person who promises to pay a loan in the event the borrower cannot meet the repayments. The guarantor is legally responsible for the debt.

Hire-purchase - a type of finance contract where a good is purchased through an initial deposit and then rented while the good is paid off in instalments plus interest charges. Once the good is fully paid the ownership of the good transfers to the purchaser. See also Rent to buy.

Interest - the cost of borrowing money on a loan or earned on an interest-bearing account.

Interest rate - a percentage used to calculate the cost of borrowing money or the amount you will earn. Rates vary from product to product and generally the higher the risk of the loan, the higher the interest rate. Rates may be fixed or variable.

Investment - an asset purchased for the purpose of earning money such as shares or property.

Liability - a financial obligation or amount owed.

Line of credit - an agreement allowing a borrower the ability to withdraw money from an account up to an approved limit.

Loan - a finance agreement where a business borrows money from a lender and pays it back in instalments (plus interest) within a specified period of time.

Loan to value ratio (LVR) - your loan amount shown as a percentage of the market value of the property or asset that will be purchased. The ratio helps a lender work out if the loan amount can be recouped in the event a loan goes into default.

Lenders Mortgage Insurance

Mortgage

Offset Account

Overdraft facility - a finance arrangement where a lender allows a business to withdraw more than the balance of an account.

Professional Package

Redraw Facility

Security - (also known as Collateral) is property or assets that a lender can take possession of, in the event that a loan cannot be repaid.

Contact Us

This information is provided only as a guide. Accession Finance will give you a better understanding of your position with a free consultation. Call us on 0434 494 656 or email via the Contact Us page