Frequently Asked Questions Glossary
Annual Interest Rate
A yearly interest divided by the principal amount
Annual Percentage Rate
The yearly cost of a loan, including interest, and all fees, expressed as a percentage, calculation based on formula provided by HKAB
Fixed Installment
A repayment method of mortgage loans, which upon interest rate change, the pre-set installment amount would be kept unchanged and the tenor would be adjusted
Fixed Tenor
A repayment method of mortgage loans, which upon interest rate change, the pre-set tenor would be kept unchanged and the installment amount would be adjusted
Overdraft Facility
A type of credit facility which regular installment amount is not preset to enable the highest level of flexibility
Principal
The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest)
Tenor
An interval of time in which installments are paid back by a borrower to a lender
Term loan
A loan which is repaid through regular periodic payments