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Home loan FAQs

Everything you need to know about home loans

We do our best to cut through the banking jargon. But sometimes we just can’t help it – after all, this is what we do all day, everyday. That said, we understand that isn’t the case for most people. So we’ve put together this cheat sheet to help you understand common home loan terms, get your head around the application process, and get a taste of the government schemes you might be eligible for.

Understanding common home loan terms

  • Approval in principle

  • Bridging finance

  • Comparison rate

  • Conveyancing

  • Equity

  • Fixed interest rate

  • Formal approval

  • Guarantor

  • Interest only repayments

  • Lenders Mortgage Insurance (LMI)

  • Loan to Value Ratio (LVR)

  • Offset account

  • Principal and interest repayments

  • Redraw facility

  • Settlement

  • Split loan

  • Stamp duty

  • Variable interest rate

Can’t find what you’re looking for?

Don’t worry – it happens to the best of us. Lucky for you, there are plenty of people at Hume Bank ready to help. All you have to do is shoot us an email, give us a call or drop by a branch.

Call us Send an email Find a branch

How to apply for a home loan

  • How much do I need to save for a deposit?

  • What documentation will I need to apply for a home loan?

  • I’m with another bank, how do I move my home loan to Hume?

How to take advantage of government schemes

  • What is the First Home Owner’s Grant?

  • Do I qualify for the First Home Owner’s Grant?

  • What is the Financial Claims Scheme (FCS)?

  • How is the Financial Claims Scheme (FCS) limit applied?