Explore More About the most common words you’ll encounter during the mortgage refinance process.

Break fee

A break fee is a penalty you may incur if you decide to break your fixed-term mortgage contract before the end of the term. It’s important to understand this fee before committing to a fixed-term loan, as it can be quite costly.

Bridging finance/bridging loan

A short-term loan that helps you buy a new property before you have sold your current one.

Cashback

An incentive offered by some lenders to borrowers who take out a new home loan or refinance their mortgage.

Comparison rate

The comparison rate is a percentage that includes both the interest rate and the fees associated with a mortgage. It’s designed to give borrowers a more accurate picture of the true cost of a mortgage and allows them to compare different loans more easily.

Pre-approval

Pre-approval is when a lender gives you an indication of how much you can borrow before you start house-hunting. This can be helpful as it gives you a better idea of your budget and allows you to make more informed decisions when looking at properties.

Discharge fee

A fee charged by your lender when you pay off your home loan. The discharge fee covers the cost of closing your home loan account.

Establishment fee

A fee charged by your lender when you set up your home loan that covers the cost of processing your loan application. It’s important to factor this fee into your calculations when comparing different mortgages.