Deciphering the 'D's" of the 'Loan Language"

Default:                   Failure to meet debt payment on due date

Deposit:                  A portion of the purchase price, usually 10%, is paid by the buyer at the time of exchanging contracts on the purchase of a property

Depreciation:          The value of the property decreases

Debt service ratio:   Maximum of the applicants weekly, fortnightly or monthly wage which will support loan repayments over the agreed loan term. Usually expressed as a percentage – most lenders set a maximum DSR between 30% to 33%

Deferred establishment fee: Fee imposed by some lenders where the borrower has sought refinance with another lender within the first few years of the loan

Drawdown:              Debiting of loan funds at settlement Discharge fee  Fee charged when a loan is discharged

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