These FAQ are courtesy of the MFAA: The Essentials of Borrowing website. Also see their Glossary.
QWhat’s the one thing I need when I borrow?A. An MFAA member.
QWhat are the basic elements of a loan or mortgage?
A. Principal, interest, term & repayments.
QIs ‘mortgage’ just another name for a home loan?A. No, it’s actually a little more than that.
QShould I have fixed rate, variable rate or split rate?A. That depends on who ‘you’ are.
QWhat do mortgage repayments cover?A. Generally principal and interest. But interest only home loans do exist.
QWhy would I use a mortgage broker?
A. Because they can save you time and money.
QWhat other lenders are there besides banks?
A. There are also non bank lenders or mortgage managers.
QHow much should I borrow?
A. As much as you can comfortably repay.
QWhat are the extra costs of buying a home?
A. Application & establishment fees, stamp duty + more.
QWhat is a low doc home loan?
A. A mortgage created for the self-employed.