Glossary

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Annual Interest Rate

A yearly interest divided by 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 - when the interest rate changes, the pre-set installment amount will remain unchanged and the tenor will be adjusted accordingly.



Fixed Tenor

A repayment method of mortgage loans - when the interest rate changes, the pre-set tenor will remain unchanged and the installment amount will be adjusted accordingly.



Overdraft Facility

One of the credit facility that does not have regular installment amount, it allows the highest flexibility.





Principal

The amount borrowed, or the portion of the loan amount not yet repaid (excluding interest).



Tenor

Period of time that the borrower repays the balance to the lender.



Term loan

A loan which is repaid through regular fixed installment.