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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 crucial for a successful property purchase. Lenders assess your application using several key metrics.
Your LVR (Loan-to-Value Ratio) and DTI (Debt-to-Income) ratio help lenders gauge risk and your repayment ability. They also review your UMI (Uncommitted Monthly Income) to see your financial buffer.
Be prepared for AML (Anti-Money Laundering) identity checks and know your credit score, as a higher score improves your chances of approval. Seeking professional advice from a mortgage adviser is highly recommended.
What does LVR mean?
Image provided by mortgages.co.nz
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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