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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Appraised Value
Estimate of the value of a property being used as security for a loan.
Body Corporate
Corporation controlled by the owners of the unit within a multiple occupancy building which manages the building and common areas.
Comparison Rate
The interest rate of a loan, which includes interest and most (but not all) fees and charges for the loan. Allows you to compare different loans.
Contract of Sale
The written agreement outlining terms and conditions for the sale of the property.
Conveyancing
Legal process for the transfer of ownership of real estate.
Cooling off period
A period of time, which may vary between 24 hours and 14 days (depending on the type of contract), during which a person or organisation can decide not to continue with a contract. Cooling off periods vary in each state of Australia.
Disbursements
Solicitor's incidental costs incurred when acting for a client e.g. searches, certificates, past records, etc.
Draw Down
Transfer of money from lending institution to the borrower before or after the loan has settled.
Equity
Indicates the financial interest of a person in a property or business enterprise e.g. a person's equity in his/her house is the difference between its value and the amount still owed on the house.
Establishment Fee
The fee charged for making a loan application.
Fixtures
Items that would cause damage to the property if removed. If a seller wishes to remove fixtures this must be stated in the contract of sale and damage made good by the seller.
Guarantor
Person/s who agree to be responsible for the payment of the loan if the borrower default or is unable to pay.
Holding deposit
An amount of money put into a bank account,or left with a person or company to secure the purchase of an item.
Interest only loan
Enables you to repay only the interest during the term of the loan. At the end of the loan term, you repay the principal as a lump sum or refinance your loan. As you would expect, repayments are lower than with a standard principal and interest loan.
Lenders Mortgage Insurance
Insures your lender against non-payment or default on a residential property loan. Mortgage insurance makes it possible for buyers to borrow up to 100% of a property's value.
Line of credit
An amount of money that can be borrowed, but on which interest is only paid when some or all of the credit is assessed.
Loan to value ratio
This is the amount of the loan compared to the value of the property or asset purchased with the loan funds, expressed as a percentage. For example, a loan of $400,000 to buy a property worth $500,000 results in a loan to value of 80%. Banks will place a limit on the loan to value ratio depending on things such as the type of property, the location and the financial position of the borrower.
Mortgage
A document drawn up between a borrower and lender, giving the lender a conditional right to the property held as security for the repayment of the money lent.
Mortgagee
The person or organisation who lends the money to purchase the goods or property.
Mortgagor
The person or organisation who borrows the money to purchase the goods or property.
Principal
The amount of the loan upon which interest is calculated and charged.
Security
Usually the property you are purchasing. It is the property Westpac can claim in case you default on the loan.
Serviceability
Ability of a borrower to make and meet repayments on a loan, based on the borrowers' expenses and income(s).
Stamp duty
A state government tax, payable for 'stamping' of legal documents. The amount varies according to the amount borrowed and the purchase price.
Strata title
A title which gives you ownership of a 'unit' of a larger building which you may sell, lease or transfer at your discretion. Also entitles you to membership of the body corporate.
Title Deed
Registration showing the ownership of a property.
Title search
A search undertaken of records registered at the land titles office to confirm interests in a particular land property. A title search show interests such as proprietor, mortgagees and charges. The search also reveals any restrictive covenants and easements which affect the estate or interest.
Vendor
One who offers a property for sale.
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