Glossary - Mortgage

A loan provided by a bank to help you purchase a property, which you repay over an agreed period with interest or profit.

A preliminary confirmation from a bank indicating how much you may be eligible to borrow, based on your financial profile.

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The upfront amount you pay from your own funds toward the property purchase before the bank finances the remaining amount.

The percentage of your monthly income that goes toward repaying debts. Banks typically allow a maximum of 50%.

An interest rate that remains the same for a specified period, giving stable monthly payments.

An interest rate that can increase or decrease based on market conditions.

An assessment of the property’s market value conducted by a bank-approved valuer.

A binding document from the bank confirming the approved loan amount, interest rate, and terms.

The stage where the bank releases the mortgage funds toward the property purchase.

The percentage of the property value that the bank is willing to finance.

A fee charged by the bank if you close your mortgage before the agreed loan term ends.

Replacing your current mortgage with a new loan, usually to reduce interest rate, lower monthly payments, change tenure, or release equity.

Moving your existing mortgage from your current bank to another bank that offers better interest rates or terms.

The main borrower whose profile is used as the base for the mortgage application.

The total length of time over which the mortgage will be repaid.

The fixed monthly amount paid toward the mortgage, including principal and interest/profit.

Making an extra payment toward the loan principal in addition to regular monthly installments.

Paying off the entire outstanding mortgage amount and closing the loan.