Banks.com.au - Australian Banking, Finance and Investments

Glossary of terms and acronyms related to Australian banking, finance and investments.

EFTPOS

EFTPOS stands for electronic fund transfer at point of sale. It is a method of payment allowing you to pay for purchases by debiting the amount directly from your savings account. The debit card is u... view full definition of "EFTPOS"

Early Termination Charges

Early termination charges are imposed when you default, transfer, or pay off your loan before the end of the term. They are supposed to cover the costs of closing the account, as well as the economic... view full definition of "Early Termination Charges"

Easement

Easement is a right-of-way granted to individuals or companies providing services to improve one's property. For example, a plumbing company may be given an easement by property owners to work on the... view full definition of "Easement"

Encumbrance

Encumbrance is an outstanding charge or liability on a property, which limits its use or prevents full transfer of ownership. Mortgages, easements, unpaid taxes, and pending legal actions are all for... view full definition of "Encumbrance"

Equity Mortgage

An equity mortgage is a type of loan that uses part of the asset's value as security. The security is usually a large percentage of the home, typically around 75% of the total value. The main advanta... view full definition of "Equity Mortgage"

Equity reduction limit

The equity reduction limit puts a cap on the amount you can deduct from your home equity. Once you react this limit, you can no longer advance loan funds from your property value. The limit ranges fr... view full definition of "Equity reduction limit"

Establishment Fee

The establishment fee is an initial payment made upon application or during the opening of a loan, credit card account, or other financial service. Also called the opening or application fee, it is m... view full definition of "Establishment Fee"

Exit Fee

The exit fee is charged when a borrower defaults, refinances, or transfers a loan to another lender. It is meant to cover the closing costs and compensate for the losses incurred by the lender on you... view full definition of "Exit Fee"