This is by no means a complete list of terms and acronyms used, but it will give you a good start. Application fee – Also called an establishment fee, it’s paid to set up your loan and usually includes legal fees and valuation charges. Appreciation - An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation. Arrears – To be behind in a repayment. Body Corporate – An administrative body made up of all the owners within a group of units or apartments of a strata building. The owners elect a committee which handles administration and upkeep of the areas shared by the owners. Break Costs – Also known as economic costs or exit fees. They are charged by an institution to recoup interest lost through a borrower refinancing with another institution or paying their loan out early. Break costs are normally only charged on fixed-rate loans where the amount of interest the institution would receive is easily calculable. It can also be charged well into the variable portion of a honeymoon or introductory rate home loan. Some institutions also charge a flat fee on top of their break cost charge. They may refer to this fee as a “deferred establishment fee”.