Type of loan granted by financial institutions to finance the purchase of a house or property that is considered new, i.e. that has never been lived in before. This type of credit is specifically designed to help buyers purchase newly built properties or properties that have recently been completed and have not yet been occupied. Generally, the conditions and terms of this credit may vary from used home mortgage loans, including interest rates and repayment periods.
Financial measure that represents the interest rate applied to a loan or investment after deducting additional charges and expenses, but before deducting taxes. It is expressed as an annual percentage and provides borrowers and investors with a more accurate view of the net cost or return of a financial product. The NARR takes into account charges such as fees, administrative fees, as well as other costs associated with the loan or investment, which are deducted from the gross interest rate to calculate the net rate. However, the NARR does not include the deduction of tax on interest earned or paid, as taxation can vary depending on each individual's personal circumstances.
Percentage a lender charges a borrower for the use of borrowed funds or the return an investor can expect to receive on their investment, without taking into account additional charges or the capitalisation of interest. It is expressed as an annual percentage.