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Understanding the meaning of mortgage acronyms and terminology
Here’s a quick explanation of what the main mortgage terms mean to help you start talking like a pro.
AI summary
Understanding mortgage terminology is vital for home buyers. Key terms include LVR (Loan-to-Value Ratio), comparing your loan to the property's value, and DTI (Debt-to-Income Ratio), which measures debt against income. The Reserve Bank may soon implement DTI limits.
Lenders also assess UMI (Uncommitted Monthly Income) to gauge financial stability and require AML (Anti-Money Laundering) identity checks. A strong credit score is essential for securing loan approval and favourable interest rates.
What does LVR mean?
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What does DTI mean?
Image provided by mortgages.co.nz
What does UMI mean?
Image provided by mortgages.co.nz
What does AML mean?
What is a credit score?
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