Understanding the meaning of mortgage acronyms and terminology

Understanding mortgage terminology is crucial for Kiwi home buyers. This guide decodes common acronyms to help you prepare for your application.

Key terms include LVR (Loan-to-Value Ratio), which compares your loan to the property's value, and DTI (Debt-to-Income Ratio), which measures total debt against income. Lenders also assess your UMI (Uncommitted Monthly Income) to gauge financial stability. Be prepared for AML (Anti-Money Laundering) identity checks and know your credit score, as a higher score improves your borrowing power.