If you missed part 1 and 2 from previous months, don't hesitate to call MTF Silverdale now, or review previous month's articles under this segment of the Hibiscus Coast App.

PPSR

The Person Property Securities Register (PPSR) is a list of all high value items that Kiwis own, along with any lender that are currently using them as security.

It exists so that MTF, as well as other lenders, can tell if another lender has a security interest over an asset that you may own or are looking to purchase on finance or to raise

fund on that asset.

Principal

The principal is the total amount that you borrow, at the start of the loan. It does not include the interest - this is calculated and charged separately.

Security

When you apply for personal or business finance, you may need to provide an asset - like your car, home, or business equipment - as "security" for the loan.

This means that if you don't make your payments, the lender has the right to repossess the asset.

This gives the lender more confidence and lowers their risk, which can make them more comfortable offering the loan.

In most cases, MTF use the vehicle you're purchasing as security.

Settlement

Loan settlement is paying back the total amount you owe - like settling your tab!

Shortfall

Insurance shortfall is something that we all want to avoid.

It happens when your vehicle gets written off, and the amount your insurance company pays out is less than the amount you have left on your loan.

There are ways to avoid this kind of problem, give us a call on 09 4210335 if you'd like it explained further.

Terms

The terms of a loan set out the agreement between the lender and the borrower, and both parties must agree to the terms before a loan can be legally binding.

It's vitally important you understand the terms of a loan before signing, and the lender is legally obliged to ensure you understand before a loan can be written.

Waiver

If you waive something, that means you decide not to enforce it or use your rights to it.

When MTF say "Waiver" we are normally taking about our Payment Waiver product, an optional protection that you can choose to include in your loan.

When we offer a payment waiver, we are saying: "We know that we have signed a contract with you, but if this specific thing happens, we are not going to enforce the contract.

"For example, if your payment waiver includes redundancy cover and you are made redundant then we will waive your repayments while you get back on your feet.

Was the above useful?

We hope this has helped you to cut through the jargon - it's important to us that you understand the language and feel comfortable and confident about your lending.

If we've missed something, or there's another term you'd like to know more about, please call in and talk to us or give us a quick call.

You are protected by responsible lending laws.

Because of these protections, the content above is not regulated financial advice.

This means that duties and requirements imposed on people who give financial advice do not apply to this content.

This includes a duty to comply with a code on conduct and a requirement to be licensed.

Now that you have a better understanding of borrowing money, why not contact MTF Silverdale by either emailing us at [email protected], call us, or pop into our office for a chat to get pre-approved for your next purchase or financial need.