Phrase

Description

Accrued Interest

Interest calculated and added to the interest amount payable, but which is not yet paid.

Application Fees

A fee that some lenders charge to accept an application. It may cover other costs such as a property appraisal or credit report, and it may be refundable if the lender declines the loan. 

Approval

Acceptance of the borrower's loan application.

Arrears

The total amount of overdue loan repayments.

Assets

Securities, cash, real estate and other goods owned by individuals.

Bridging Finance

A short term loan which covers a gap between the purchase of a new property and the sale of a current property. 

Capped Rate Loan

The interest rate on this loan is guaranteed to not surpass a certain rate for a fixed period of time. However, the interest rate can fall.

Community Title

A property title where several buildings are constructed on an estate, where the owners have access to a community club house, swimming pool, tennis courts, etc.

Company Title

A type of ownership for an apartment in a building that is owned by a company.  The purchaser buys shares in the company which gives them the right to occupy the apartment.

Covenant

Imposes conditions on the use of a parcel of land.

Credit Bureau

An organization to which lenders subscribe which holds the credit information of individuals. You may buy a your credit history.

Equity

The amount of an asset not subject to any lender's interest.

Establishment Fee

A fee charged by a lender to set up a loan.

Equity Loan (aka Line of Credit)

A loan usually secured by the proportion of the home in which one has equity. It operates like an overdraft: the borrower has a set credit limit to which they can draw funds.

Fixed Interest

An interest rate set for a fixed term. If the loan is paid out before the term expires penalties may be imposed.

Guarantee

A form of security for a loan where someone else guarantees to repay the loan if the borrower defaults.

Interest Only Loan

A loan where the principal is repaid at the end of the loan term and the interest is repaid during the term of the loan. These loans tend to be quite short in duration.

Joint Tenants

Where more than one person is the owner of the property. If one person dies, then the title goes to the survivor(s), regardless of the will of the deceased.

Liabilities

A person's debts.

Mortgagee

The person taking a mortgage over land.

Mortgagor

The party granting a mortgage over land.

Principal

The capital sum borrowed.

Principal & Interest

A loan in which both the principal and interest are repaid together on a regular basis, mostly in monthly installments.

Security

An asset that protects a Lender's risk until the loan is fully repaid. Normally property is offered as security.

Settlement Date

The date on which the new owner finalizes payment and assumes possession of land. Sometimes it's called the "Drawdown" date, as this is the date the loan is usually fully drawn.

Strata Title

Similar to Torrens Title, but usually over units. In a Strata Title, only a particular unit is owned. In a Torrens title, the land is owned plus everything thereon.

Torrens Title

Torrens Title is the most common form of property title in Australia . All previous and current owners are listed on the one deed, as are all previous mortgagees etc. Also know as the "Real Property Act", the legislation that governs the operation of Torrens Title.

Valuation

A report giving a professional opinion on the value of property. Valuations can take several days, as the Valuer may need access to the dwelling, so appointments with current owners are necessary. This can slow the process.