Financial Dictionary - M

Article Index


this is the difference between the lender's interest indicator rate (or other reference rate) and the rate actually charged to borrowers).


the date a debt or investment must be paid in full.


a form of security for a loan usually taken over real estate. This lender, the mortgage, has the right to take the real estate if the mortgagor fails to repay the loan.


the lender of funds.


the person borrowing the money in the terms of a mortgage.

Mortgage Brokers

a person or organisation marketing numerous loans from a panel of lenders. They offer a service where they will select the best loan or loans for borrowers from this selection.

Mortgage Discharge Fee

an administration fee to cover the costs (e.g. documents) incurred in winding up a loan.

Mortgage Insurance

(lender's) a form of insurance taken out by the lender to cover themselves in the event that the borrower defaults on their loan and the sale of the property is unable to cover the outstanding amount. Mortgage insurance premiums are usually payable by the borrower when the amount borrowed is over 80% of the property value and sometimes at lower loan to valuation ratios.

Mortgage Manager

a company responsible for managing every facet of a borrower's loan. Often sources loans from mortgage originators.

Mortgage Originator

retail and more often wholesale lender who sources securities funds in order to package them as loans.

Mortgage Protection Insurance

not to be confused with mortgage insurance, this covers borrowers' loan repayments in the event that they are not able to meet them through illness or redundancy, for example.

Mortgage Registration Fee

a State government fee for the registration of a mortgage, usually around $80.