Your Mortgage is probably the most significant financial commitment you will ever make. To ensure that you make the right decision and can communicate with your lender or broker it is essential for all Australian borrowers to understand the Australian mortgage jargon.

Attached are some of the most common Aussie lending terms in circulation:

Comparison Rate

Also referred to as AAPR, the Comparison rate reflects the total cost of your loan by taking into account other costs other than the advertised interest rate. This is then expressed as a total interest rate cost to you over an average loan term.

Loan-to-Value Ratio (LVR)

This is the ratio of the loan required over the security value property. With a mortgage of $80,000 and the security property value of $100,000