A-Z of Lending

The option to make higher payments to repay a loan faster than arranged.

To agree to the terms of an offer or contract.

Fees charged to cover or partially cover the lender’s internal costs of administering the account.

The amount of loan interest that has already occurred but is not yet due for payment. It is also known as Interest Accrued.

These are the process of calculating and allocating charges such as rates, taxes, and utilities. They help ensure that the buyer only pays for costs payable when they take ownership of the property, while the seller is responsible for any expenses before the sale. For example, if you settle on April 1st & the rates are paid up until July 1st, you must reimburse the amounts paid from April 1st – July 1st. Usually, you won’t know these at the preliminary funding point, and a good estimate is $1,500-$2,000.

A person or body authorised to act on behalf of a client in the property sale, purchase or management.

A block of land created out of a larger area.

How many split accounts can you have with this product

Providing alternative types of documentation as the customer’s income verification method

The period one has to repay a loan at the arranged terms.

The formal term for a standard principal and interest loan.

Fees are charged to cover or partially cover the lender’s costs of processing a loan application for an applicant.

The estimate of the value of a property used as security for a loan.

Also known as Pre-Approval. Initial loan approval is based on the lender’s information before a property purchase is found. This approval will be subject to a few conditions, including a satisfactory valuation of the property.

A transaction or relationship where the parties involved are independent and unrelated, and therefore, they are dealing with each other fairly and without any conflicts of interest.

The result of a loan being overdue in repayments.

A valuation to determine property value once construction or renovations have been completed. Usually, this is the current property or land value + improvements/renovations or building costs.

An item owned with a monetary value (e.g. cash and/or property).

A public sale of property with ownership going to the highest bidder, subject to a reserve price being reached.

The Australian Bankers’ Association (ABA) is the national organisation of licensed banks in Australia.

The unique identifier for the employer’s business.

APRA is an unbiased body that oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies and most members of the superannuation industry.

A statement of assets, liabilities and net equity for an enterprise at a point in time.

A large loan repayment to clear a debt, typically towards the end of the loan term.

A cheque issued by a bank by debiting funds available in an account drawn on itself.

Internal Bank Language. This is 80% of the actual property value

A communication from one bank to another to advise on a customer’s reliability or creditworthiness.

When a debtor who cannot pay their debts manages their financial affairs by a trustee in bankruptcy.

This is the rate at which an employee is paid for each hour of work.

A basis point is one-hundredth of a per cent or equivalently one per cent of one per cent, or one ten thousandths. 50 basis points are equivalent to 0.5%, as one basis point is one-hundredth of 1% or 0.01%.

A person presenting a cheque to a bank for payment.

See Owners’ Corporation.

Genuine and above board.

Borrowing capacity is the maximum amount a lender is willing to loan to a borrower based on financial circumstances and ability to repay. To get this figure, we look at income, household situation and liabilities.

Fees charged by the lender if the loan is paid off in full before the end of the loan term. Also referred to as a Fixed Rate Break Cost.

A temporary loan used as a gap any costs or time between buying your new home and selling the old one.

Finance and Mortgage Broker

A Broker Business

Insurance cover the cost of rebuilding or repairing a property following structural damage, for example, by flood, fire, storm and subsidence. A Certificate of Currency provides evidence of Building Insurance.

The standards formulated by local councils to control the quality of buildings.

A sum of money that is borrowed to start or improve an existing business.

It is just as it sounds, how much can the client borrow? This is mostly based on living expenses, liabilities and income. To check capacity, we use a servicing calculator

Adding LMI to the loan amount, rather than paying out-of-pocket

The “capital” that the borrower will put towards the collateral, or security, by this they mean the deposit and contribution

The monetary gain obtained when you sell an asset for more than you paid.

Tax payable to the Australian government (via the Tax Office – ATO) on the profit made when selling an investment property.

A loan where the interest rate is not allowed to exceed a set level for a period of time but, unlike fixed-rate loans, is allowed to drop.

A loan on a personal line of credit, typically a credit card (a type of unsecured debt), attracts a higher-than-normal interest rate. For example, Withdrawing cash from an ATM from a credit card.

A legal notice or warning registered on a property’s title that indicates that someone else (not the property owner) has an interest or claim in that property. It serves as a formal way to notify anyone dealing with the property that there might be an existing legal or financial interest that needs to be considered before any further actions are taken involving the property.

Latin for ‘let the buyer beware’.

Comprehensive Credit Reporting

Document showing who owns the property as well as all the associated details of size and whether there is a mortgage registered (if applicable) on the title. The State Governments in Australia handle the management of these documents.

These days it’s all around credit reports. The lender will obtain a credit report (with consent). This shows conduct on past and current debts as well as a carded score based on statistics. They use the credit report to assess how likely the borrower is to repay the loan.

Any property other than freehold land. Personal chattels are movable, tangible property articles such as white goods and furniture. Chattels include leasehold interest in land.

A group of houses or villas that share a common space.

Something pledged as security for repayment of a loan, to be forfeited in the event of a default.

The Assets given by a borrower to a credit provider in order to secure a loan. It serves as an assurance that the lender will not suffer a significant loss.

A fee payable to a real estate agent, by the vendor, for the sale of property, or by a lender or client to a third party, such as a broker, for arranging a loan.

An area used by many, not an individual. Owned by the Owners’ Corporation. For example, a swimming pool or gym in an apartment building.

A form of right of occupancy that applies when owners of units in a block form a company and each holds shares in the company that entitle them to occupy a defined area of land.

How much it costs over the total loan term. Repayments + Fees over the total loan term.

This rate includes both the interest rate and fees associated with the loan, giving borrowers a better idea of the overall cost. This is commonly calculated based on a $150,000 loan over a 15-year term.

Loan interest is paid on both the accumulated interest as well as on the original principal.

CCR is a reporting system where credit providers like Banks share customers’ credit histories. This assists in making more informed lending decisions.

the financial conditions that exist at the time of loan submission, it could be that your client needs to close their credit card before formal approval, or it could mean that their borrowing capacity is based on a specific fixed rate that may change.

An act of Parliament governing the provisions of consumer credit.

A policy insuring household contents against theft and damage.

A legally enforceable agreement between individuals or entities. In real estate, a contract is entered into when contracts are exchanged and the deposit is paid.

A written agreement outlining the terms and conditions for the purchase or sale of the property.

Any variation or alteration to the terms of a contract. Also known as Letter of Variation or LOV.

A person qualified and licensed to handle all documentation for the sale and/or purchase of a property.

Legal work carried out by your legal representative to transfer property ownership.

an annual contribution fee that the Local Government charges land-owners determined by a percentage against your property to pay for communal roads and areas. The amount varies from state to state.

Additional signature/s verify the authority of the person signing.

Terms and Conditions specify the usage of a block of land or the buildings on it.

A note of temporary property insurance before implementing a formal policy.

Credit Reporting Bodies

An agreement whereby the borrower receives money (or goods) now, on the understanding it is to be repaid under set guidelines that commonly include an interest charge.

The maximum amount a borrower can utilise/access at any one time.

A report outlining an individual’s credit history, public records and any credit black spots.

A person or organisation who loans money on the expectation it is to be repaid.

The extent to which a person or company is considered suitable to receive financial credit, often based on their reliability in paying money back in the past.

A term used to describe a loan secured by two or more properties. If you have a home and borrowed additional funds for an investment property from the same bank, they can cross-collateralise the properties to lend you additional funds.

A cheque with two parallel vertical lines to specify that the cheque must be paid into an account and cannot be cashed.

A tool to capture personal and financial information about customers

A CRN is a Centrelink identification number; it is issued at the time Centrelink verifies someone’s identity.

Loan interest that is calculated and charged to the loan. Interest is calculated daily, and charged monthly.

An account entry to withdraw funds from a specified bank account.

A bank access card used to withdraw funds from funds held in a bank account.

An amount of money owed by one person or organisation to another. Examples include personal loans (i.e. for buying a car, etc.), credit cards with a balance outstanding, or any type of loan (home, business, commercial).

The process of merging your debt into one amount to simplify your repayments.

The Debt Servicing Ratio measures whether you can afford the loan repayments. To calculate the DSR, the lender uses several factors to determine the amount of your income available to repay the debt.

Debt to Income ratio. A debt-to-income ratio compares the amount of debt a client has to their income. Lenders use a debt-to-income ratio to measure credit eligibility based on perceived ability to manage repayments. To calculate DTI, you just divide the total debt by the total income.

Someone who owes money to someone.

A legal document that states an agreement or obligation regarding a property.

Failure to make a loan repayment to a bank by a specified date.

An agreement between two parties where the parties may postpone the amount due to be repaid (on a debt) on a given date until a later date.

This payment is made to the selling agent, usually 5 – 10% of the property value. This amount goes towards the purchaser’s contribution, i.e. if you purchased for $500,000, your deposit would be $25,000. A deposit may also refer to funds credited to a bank account.

An insurance policy to cover the deposit on a purchased property.

The amount claimed on an investment property for the reduction in the value of an item due to usage, the passage of time, and wear and tear.

This is any income that the director, your client, is paying themselves. This can be shown in various ways. Usually, we would just provide an individual tax return as supporting evidence.

Also known as a Drawdown. The various costs your solicitor or conveyancer must pay to other organisations and bodies on your behalf, such as search fees and stamp duty/ land tax. Your solicitor or conveyancer will itemise the disbursements on the invoice they send you/the lender at settlement. The lender may also refer to this term when drawing down the loan funds after settlement.

Payments made by companies to their shareholders as a portion of the company’s profits. If this section includes income, it means that the individual has shares in a company, this can include basic shares like something from CommSec, or they may have a large share portfolio.

Also known as a Disbursement. The amount of loan funds provided at the time of settlement by the lender to purchase your property.

Dual occupancy refers to a property that contains two separate dwellings on the same land parcel. This could be a house with a separate granny flat or a duplex with two distinct units. Each dwelling has its own entrance and facilities.

An easement is a legal right granted to a person or entity to use another person’s land for a specific purpose. For example, a property might have an easement for a utility company to access utility lines.

The electronic transfer of funds from one bank account to another.

A unique identifier assigned by the employer to the employee.

The company or organisation employing the individual.

An outstanding liability or charge on a property.

To sign the back of a cheque to confirm or transfer its ownership to someone else.

The difference between the value of the property and the amount of money owed on the mortgage.

The lender’s fees that may or may not be charged to set up a loan.

The legal point of time when the vendor and purchaser swap documentation and start enquiries with a view toward settlement.

Finance and Mortgage Broker

A finance clause is the most common condition when making an offer and signing contracts. It allows the buyer a set period of time to obtain finance for the property, and if they are unable to secure financing, the contract can be terminated without penalty. Your deposit will be paid once finance is secured.

As a broad description, we define these as lenders that rely on technology and automation to make credit decisions.

An Australian who does not have a record of owning a dwelling or land and who, therefore, purchases property for the first time.

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their legislation. Under the scheme, a one-off grant is payable to first homeowners who satisfy all eligibility criteria. This is generally arranged via a lender to be used towards the purchase of a property.

Items that can be removed from a property without causing damage to it. Fittings that will remain in the property must be specified in the contract for sale.

Your interest rate is locked in for a fixed loan term; you are then protected against possible interest rate rises for the selected ‘fixed’ term period.

The cost associated with ending a fixed rate home loan early 

These dividends come with attached franking credits (also known as imputation credits), which represent the tax the company has already paid on its profits. Shareholders can use these franking credits to offset their own tax liabilities.

Gives the purchaser complete and indefinite ownership of a property and the land on which it stands. Where a proprietor has sole ownership of a property without encumbrance. In other words, they have a free title without a mortgage and, therefore, no debt outstanding with a lender.

A lender account in which all transactions have been suspended.

Different to deposit, this is at a minimum 5% of purchase price PLUS costs; costs are usually estimated at $3,000, which can include adjustments, conveyancing fees and rates, i.e. if you purchased at $500,000, your funds to complete would be 5% of property value $25,000 plus $3,000 fees

The total funds required to complete a purchase transaction. Include the property purchase funds and all fees and charges associated with the transaction.

The Game Plan is an LMG term and incorporates both the Credit Proposal Disclosure Document and the Preliminary Assessment document. A Game Plan can be generated on MyCRM.

A General Security Agreement (GSA) is offered over the general assets of a business. In the past, this would be solely represented as a “Chargeover the business assets”.

Proof that a homeowner has saved at least 5% of the property value over at least 90 days. This is usually proven by a savings account or rental ledger.

Documentation of the goals your client set

The total amount the employee earned before any deductions

Total interest earned on investments or savings before taxes and fees. Can come from bank accounts, term deposits, or other interest-bearing investments. Gross interest means no withholding tax deducted at source.

It may be possible to vary the terms of your contract should you find yourself in a position where you are having difficulty meeting your repayment obligations.

typically apartments, this is housing that has a higher population that the average apartment, unit, or townhouse, think high rise in the city.

A refundable deposit demonstrating the buyer’s goodwill to proceed with the purchase.

A way of referring to both buildings and contents insurance.

A repayable amount that a lender provides to a borrower in order to purchase a property. The loan amount is the sum of money borrowed by the borrower from the lender. This allows the borrower to acquire their desired property without paying the entire purchase price upfront.

Also known as an introductory rate. This is an offer of a lower interest rate for an introductory period, usually the first 1-3 years of the loan. Once the honeymoon or introductory period ends, the interest rate usually reverts to the lender’s standard variable rate or higher. This is often, but not always the case.

The total amount of hours paid for this pay period, which may include overtime, shift work and ordinary hours

A second mortgage is a mortgage secured by a property in addition to your primary mortgage.

Items included with a property, e.g. light fittings, stove, etc., must be specified in the contract of sale.

Previously known as a PAYG Summary. Income Statements show an employee’s year-to-date salary and wages, the tax that has been withheld and the superannuation that has been paid.

A percentage charge on funds borrowed or return on funds invested. Generally given as an annual percentage, but can be any duration such as monthly or quarterly for shorter term borrowings or investment

A loan where the borrower elects to make monthly repayments of interest and no principal reductions. The interest-only period is limited to between 5 to 10 years, depending on the product option selected by the customer and approved by the lender. More interest is paid over the loan term with an interest-only loan. At the end of the interest-only period, repayments will change to principal and interest for the remainder of the loan term.

This is the percentage charged by the lender on the amount borrowed. It can be fixed or variable. Interest rates are determined by the lender based on the current cash rate

A measure of the return on investment (or loan) which takes into account the time value of money by showing the rate of interest at which the present value of future cash flows is equal to the cost of the investment or loan.

Also known as a honeymoon rate. This is an offer of a lower interest rate for an introductory period, usually the first 1-3 years of the loan. Once the honeymoon or introductory period ends, the interest rate usually reverts to the lender’s standard variable rate or higher. This is often, but not always the case.

A list of items included with a property, e.g. furniture, moveable items etc.

The equal holding of property between two or more persons. If one party dies, their share passes to the survivor(s). Commonly seen in purchases between spouses so that ownership automatically reverts to the surviving partner. Property held under joint tenancy cannot be bequeathed under a will.

A State Government tax charged to the owners of any property based on a stipulated value of the land, other than a principal place of residence. Land Tax is not applicable in the Northern Territory.

An agreement between two parties under which one (the lessee) is granted the right to use the property of another (the lessor) for a specified period under specific terms and conditions.

This type of property involves the owner leasing the property to another party for a period (usually 99 years) and usually applies to land owned by the government.

This is the paid fee for a conveyancer (sometimes known as a settlement agent), in exchange for their services. It is taken into consideration within calculations.

A person or organisation who provides money to another under the proviso that it will be repaid according to set guidelines and terms.

LMI is a once-off insurance premium that protects the lender in the event you default on your mortgage repayments—usually required if you are borrowing more than 80% of the value of the property.

a person who holds the lease (in regards to property, this would be the tenant)

A person’s debts or obligations.

A form of insurance by which someone’s life is insured.

This is a borrowing arrangement that means that the lender’s recourse is limited to the specific asset held as security

A flexible loan arrangement with a specified ceiling (the credit limit) to be used at a customer’s discretion.

Assets in cash or readily convertible to cash.

Providing low amounts of documentation as the customer income verification method

The length of time the loan is taken out for (how long you have to pay it back). Typically, this is 30 years.

The loan-to-value ratio is calculated by Loan amount divided by property value x 100 = LVR.% (e.g. $350,000 ÷ 500,000 = .70 x 100 = 70, therefore your LVR is 70%).

A low-density property has the lowest population per unit, a large subdivision consisting of one-acre lots will be low-density, think farms and rural suburbs.

Loan to Value Ratio: this is the loan amount percentage compared to the property value. Calculated as:Appraised Value divided by Loan Amount x 100

An interest rate that includes both the headline interest rate and the fees and charges relating to a loan. It is designed to help consumers identify the true cost of a loan and compare it with other similar loans.

This is lending taken out to invest in shares or managed funds. Existing investments are used as security

The date that a debt or investment must be paid in full.

The maximum amount that can be borrowed.

The maximum length of a home loan or a specific portion within that loan.

The maximum loan-to-valuation ratio. This means the amount you can borrow is expressed as a percentage of the security valuation (usually the property being used as security). For example, 90% LVR means you can borrow up to 90% of the valuation of the property. The maximum loan amount based on property value can be calculated by Property value x Max LVR % = Maximum loan amount (for example, 500,000 x 90% or .90 = 450,000) can calculate the maximum loan amomt

Has a medium population per unit, usually a ‘suburban’ apartment or semi-attached housing.

The minimum amount that can be borrowed at a fixed interest rate.

The minimum amount that can be repaid as a lump sum.

The minimum amount that can be redrawn from a loan at any time.

The fees charged to cover or partially cover the lender’s internal costs of administering the loan each month.

A legal agreement when a borrower obtains a home loan. It serves as a security measure for the lender, providing them with the right to take possession of the property if the borrower fails to repay the loan according to the agreed terms.

Where the lender forces the sale of the property held under the deed of mortgage to recoup unpaid monies owed under the terms of the agreement.

The cost of registering the mortgage on your property title.

State government tax calculated on the borrower’s loan amount.

The length of time you agree to pay back your mortgage, usually up to a maximum of 30 years.

The lending institution or provider of funds to the borrower.

The borrower.

The NCCP Act  is an Australian legislation covering consumer protection and consumer rights.

A way of claiming tax deductions on an investment where the cost of maintaining the investment plus the interest charged exceeds the return generated from the investment.

The amount the employee receives in their account. This is the amount after all deductions, including Tax, have been subtracted from the gross earnings.

Designed for those who find it more challenging to meet the borrowing conditions of standard loans, these are provided by non-confirming lenders, who are usually Non-Deposit Taking institutions.

A property types that are purchased from the plans only or before construction has commenced/completed. The purchaser will not be able to inspect the property or see the standard of finishes, the practical layout, the size and dimensions or the outlook. However, the purchaser may be able to view a display unit and sample finishes.

A formal written or verbal offer that sets out the terms, such as price, conditions and settlement dates under which the buyer agrees to purchase a property. This offer must be accepted by the seller, and if accepted, it begins the process of a legally binding contract that will be subject to the terms and conditions stated in the offer.

An offset account, sometimes simply referred to as offset, is an account linked to a loan. The balance in the account ‘offsets’ the principal of the loan. Interest is calculated on the principal less the offset account balance.

A system of land where a purchaser receives a title that is only as good as that which a seller can sell. Old System transactions require examination of a series of deeds and documents relating to all dealings in the land back to what is recognised in law as ‘good root of the title’ (for example, a conveyance for value more than 30 years ago).

Independent body established within a particular industry to investigate and resolve disputes as an outside party to the dispute.

Customer fact find

A legally binding document that gives a person, for a fee, the right to buy something, usually within a specific time frame at a particular price and subject to specific conditions.

An arrangement on a cheque or savings account under which a bank extends credit up to a maximum amount (the overdraft limit) and against which the customer can withdraw. Interest is charged on the fluctuating daily balance.

A representative body for and on behalf of the owners to administer, control, maintain and manage all areas of the common property for the strata scheme.

The option to reduce your regular principal and interest repayments by up to half in the event of a loss of income due to maternity/parental leave.

A property is ‘passed in’ at auction if the highest bid fails to meet the reserve price set by the vendor.

The person or entity to which a cheque or transfer is payable to.

PAYG stands for ‘Pay as you go Tax’; it is deducted from an employee’s salary by their employer based on their income, tax file number and tax status.

How often a loan repayment or fee is due.

Planning permits, or building permits, are official approvals granted by local government authorities for certain construction or development activities. These permits ensure the proposed project adheres to zoning regulations, building codes, and other relevant regulations.

The detailed illustration of a house that shows the internal layout and dimensions and the position of the house on the land.

A feature that enables a home loan to be transferred from one property to another without refinancing. It can be of benefit by saving on loan set-up fees and government loan security duties.

A home loan pre-approval confirms how much you can borrow from your lender. It is conditional upon the property you wish to purchase being acceptable security and your lender verifying your income and other information provided in your application.

The amount of capital borrowed.

A loan in which both the principal and the interest are repaid over the term of the loan.

Repayment of the amount of money borrowed, not including interest or fees.

The sale of a property without enlisting the services of a real estate agent.

A private treaty sale is where a house is offered for sale at a negotiated price. The regular practice is for the vendor to set a price, and the buyer negotiates with the seller until a mutually agreeable price is reached. Unlike an auction, the potential buyers do not know what others may offer for the property.

A profit & loss is a statement of earnings for self-employed individuals, companies or similar This represents a period of time, such as a month or a year. It shows the total Revenue from all sources, deducting all Expenses to arrive at Net Income or Profit.

A payment is made to the builder as each construction stage is completed, usually the bank requires a form and invoice to pay; as each progress payment is made, the clients loan will be ‘drawn down’ and increased by the invoice amount.

A collection of property investments owned by an individual, a group or a company.

Usually called redraw, is a feature of some home loans that lets you access extra principal repayments you’ve made on your loan. Access to additional repayments that have been made on a loan

A fee charged by a lender to cover or partially cover the lender’s internal costs of allowing the borrower to redraw funds. 

The process of switching your loan from one product (or lender) to another, usually with a better interest rate or conditions. Your initial loan is paid out, and your debt is transferred across to the new product or lender.

A repayment holiday is when you’ve built up enough buffer with your funds (available redraw)from making extra repayments on your home loan. This buffer allows you to stop or reduce the number of loan repayments as available redraw covers your scheduled home loan payments. You should contact your lender to check that your available redraw will cover the payment you wish to miss or reduce.

To reclaim possession of goods or assets that were provided as security for lending due to failure to make repayments within the agreed terms and conditions 

Requisitions are questions asked by the buyer of the seller about the title and statutory obligations and controls affecting the property. The contract creates the right to make requisitions, and the seller must answer the requisitions accurately and in a reasonable time.

The RBA contributes to the financial stability of Australia and is influenced by things like the consumer price index, employment and overall Australian welfare. The RBA creates the cash rate, which will affects the amount of interest that lenders charge on their lending.

The specified minimum price acceptable to a seller at auction and commits the seller to sell the property if the reserve is reached. If bidding falls short of the reserve price, it is usual for the seller to negotiate with the highest bidder to arrive at a mutually agreeable price.

A right of way is a particular type of easement, i.e. a right to travel over land belonging to another person in a specific manner. It does not give a right to take any produce or soil from that other person’s land.

A building contract clause that allows the final pricing to move up or down according to the fluctuations of material prices, wages, or variations in building work.

The annual base income received before any additional income, such as overtime.

A scorecard decline is a decline from a lender based on things like their previous history with the bank, 

An examination of records or documents at a Land Titles Office or Government Department to confirm ownership of property, registered easements and other encumbrances or current or future proposals regarding the land.

An asset that guarantees the lender their loan until the loan is repaid in full. Usually, the property is offered to secure the loan.

An asset provided in exchange for a home loan, right of a lender against the real property, or other assets of a borrower or guarantor to secure the repayment of a loan.

The day on which the process of changing the title of property occurs. Your legal representative will organise the exchange of money and documents so that you become the legal owner of the property.

The date on which documentation for the transfer of property ownership from the seller to the buyer takes place upon finalisation of the purchase price. It is also usually the date on which the buyer assumes possession.

A person authorised to access an account or who has the authority to sign and be bound by documents.

The loan is split is a lending facility with two (or more) accounts. Customers sometimes use this option to take part of their loan at a fixed interest rate and part of their loan at a variable interest rate giving them rate certainty on the fixed rate portion and flexibility on the variable rate portion.

The tax associated with purchasing a property and the legal costs of transferring the land. It will vary depending on your state and depending on the property.

These are also referred to as strata levies. These are payable (usually quarterly) to the Body Corporate when you purchase a strata-titled home or unit.

This is where the property has been subdivided into lots; each unit owner is the legal owner of a property and gives you a share in the company of the common ground.

A subdivision involves dividing a larger piece of land into smaller plots or lots (like a piece of cake). These lots can then be sold individually.

A plan that shows the boundaries, and the position, of any buildings within a block of land and confirmation whether the building complies with Local Government legislation.

A fee that may be charged to cover or partially cover the lender’s internal costs of changing the loan from a variable interest rate to a fixed interest rate.

This is a type of co-ownership where two or more people own distinct interests (which can be equal or unequal) in the same property. Unlike Joint Tenancy, when one party dies, their share of the property does not pass to the other owners and is passed onto his/her will.

This is either secured or unsecured and is often used to fund a specific purpose, such as a property development or a medium-term investment.

Also referred to as the Majors, include Commonwealth Bank Australia (CBA), National Australia Bank (NAB), Australia and New Zealand Bank and Westpac Banking Corporation (Westpac/WBC).

Similar to freehold, means that the purchaser owns the land and building outright.

The name given to the registration system of ownership and dealing with property. Under this system, the title to a property is established by a statutory title issued by the Registrar General. It is the most common form of residential property ownership. You are lawfully entitled to lease, sell or dispose of the property as you desire. 

The total loan amount being applied for including any fees, charges and other

A type of dwelling which shares at least one common wall with neighbouring dwellings, usually a two-storey dwelling registered under a strata title.

A document registered with the Land Titles Office that confirms a change of ownership. The change of ownership is noted on the Certificate of Title.

this is the cost of transferring the title from the seller’s (or vendors) ownership to your ownership. This also varies depending on the state.

An unconditional offer when buying a home means that the buyer has agreed to purchase the property without any specific conditions, such as obtaining financing or a satisfactory inspection report. Your deposit will be paid at the time of contract signing, and will not be refundable.

A property free of mortgages, encumbrances, covenants or restrictions.

These dividends do not come with attached franking credits, meaning the company has not paid taxes on the profits distributed as dividends.

Debts not secured by an asset. Common sense. 

A loan in which no property is held as security, generally attracting a higher interest rate due to increased risk on the lender’s part.

An estimation of the property value prepared by an independent professional valuer.

The interest rate will vary depending on several factors, including the Reserve Bank’s current cash rate and prevailing lender sentiment.

The person who is selling the property.

A statement by the seller to the buyer detailing material particulars regarding the property in question.

A single-storey, attached dwelling.

Zoning regulations determine how the land can be used within specific areas. Different zones allow residential, commercial, industrial, or mixed-use development.