| A |
| amortisation period |
the period of time over which the principal of a loan
is repaid |
| arrears |
an overdue account yet to be paid |
| arrears fee |
a charge for administering the arrears position |
|
| B |
| borrower |
the person being provided funds in the form of a loan |
| break costs |
the costs levied by a lender when the borrower discharges
a loan within a certain period of time following settlement |
| body corporate |
a corporation of the owners of units within a building. They form a self-elected council for the management of the building and common areas. |
| bridging finance |
a loan that enables you to cover the purchase of a new property when you are yet to sell your existing property |
|
| C |
| Certificate of Title |
this document, issued by the State Government, details
the land dimensions and ownership details, and whether there are any encumbrances
on it |
| Consumer Credit Code |
an Act of Parliament governing the relationship between borrowers and lenders |
| contract of sale |
a written agreement outlining the terms and conditions for the purchase OR sale of property |
| conveyancing |
the legal process for the transferral of ownership of real estate |
|
| D |
| deposit bonds |
a bond that will guarantee that the purchaser of a property
will pay the full deposit by the due date, used as surety when cash isn’t
immediately available |
|
| E |
| early repayment fee |
a fee charged when a loan discharges within a certain
period of time following Settlement |
| encumbrance |
an outstanding liability OR charge on a property |
| establishment fee |
fee charged to set up a loan |
| equity |
that portion of the value of an asset that is NOT encumbered
(actually owned) |
| exchange of contract |
the legal point of time when the vendor and purchaser swap documentation and start enquiries with a view to settlement |
|
| F |
| Fixed interest period |
the period during which the interest is a set rate |
| fittings |
items that can be removed from a property without causing damage to it |
| fixtures |
items that would cause damage to a property if removed |
|
| G |
| guarantor |
a party who agrees to be responsible for the payment of another party's debts |
|
| I |
| interest |
the charge for the use of funds |
| interest only |
a loan where the repayments do NOT contain any of the
principal |
|
| J |
| joint nomination |
where 2 OR more applicants can nominate 1 person to receive notices and documents on behalf of all parties |
|
| L |
| lender's legal fees |
fee’s paid the lender’s solicitor for establishing
the loan and mortgage |
| liabilities |
someone's debts OR obligations |
| line of credit |
a flexible loan arrangement with a specified ceiling to be used at a customer's discretion |
| loan to value ratio |
the ratio of the amount lent to the valuation of the security |
|
| M |
| margin |
the difference between the lender's interest rate and the rate actually charged to the borrower |
| mortgage manager |
a company (such as BMM) responsible for managing every
facet of a borrower’s loan. Often sources loans from mortgage originators |
| mortgage insurance |
insurance taken out against the borrower by the lender
in the case of default on the loan. In most cases, mortgage insurance
will pay the difference between the amount realised from the sale of the
property and the amount owing on the mortgage |
| mortgage originator |
retail OR wholesale lender who sources securitised funds
in order to package them as loans |
| mortgage registration fee |
government fee payable for the transfer of the title;
discharge of a mortgage; registration of a mortgage; registration of a
caveat and other registrations, such as leases |
| mortgage stamp duty |
government duty payable on the borrower's mortgage. The amount of duty varies FROM State to state. |
|
| P |
| principal |
the capital sum borrowed on which interest is paid |
| principal and interest |
a loan in which the principal is fully repaid during the
term of the loan |
| privacy act |
a law to protect consumers in regards to their privacy
from information being shared. By signing the Privacy Act Authority, the
consumer gives the lender authority to access credit reports from credit
reference associations |
| purchase stamp duty |
government duty payable on the contract of sale |
| purchaser |
the buyer
|
|
| R |
| redraw |
the withdrawal from a loan facility of amounts paid into
the loan in excess of the minimum repayment schedule |
| refinance |
to replace OR extend an existing loan with funds from the same OR another institution |
|
| S |
| searches |
enquiries made to confirm ownership, encumberances and restrictions on the title of a property |
| security |
an asset that is encumbered by the lender to guarantee
their borrowings until the loan is repaid in full |
| settlement date |
date on which the new owner finalises payment and takes possession of the property |
| stamp duty |
State government tax |
| strata title |
right of title OR ownership of a section OR unit of a larger building |
|
| T |
| term |
the length of a loan OR specific portion within that loan |
| title search |
process to ensure that the vendor has the right to sell and transfer ownership of a property |
| transfer |
a document registered with the Land Titles Office that confirms the change of ownership as noted on the Certificate of Title |
|
| U |
| unencumbered |
a property free of liabilities OR restrictions |
|
| V |
| valuation |
a report detailing a professional opinion of the property’s
value |
| variable rate |
a rate that can vary during the term of the loan, at the
discretion of the lender, generally following trends set by the Reserve
Bank |
| vendor |
the seller |
|
| Z |
| Zoning |
defines the uses of particular parcels of land, as permitted
by the local authority |
