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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
Navigating the mortgage process means understanding key financial terms. LVR (Loan-to-Value Ratio) compares your loan to the property's value, while DTI (Debt-to-Income Ratio) measures your total debt against your income. Lenders also assess your UMI (Uncommitted Monthly Income) to gauge your financial buffer.
Be prepared for AML (Anti-Money Laundering) checks, which require identity verification. Finally, your credit score reflects your reliability in managing debt and is a key factor for loan approval and 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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