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