Arrears: Amount overdue on a loan repayment.
Assets: Anything owned by the applicant - Money, Property etc.
Bridging Finance: A short term Loan, that covers a financial gap between purchasing a property and selling an existing property.
Capital Gain: Profit from the sale of assets such as property and shares.
Code of Compliance Certificate: A certificate issued by Council confirming that all buildings on the land comply with building regulations.
Covenant: Special terms that apply to a particular property, for example what type of cladding the house must have.
Credit Check: A credit check shows a history on any unpaid debts, missed loan defaults, credit collections, bankruptcy's etc, over the last 5 years, as well as details of anyone who has requested a credit report on you during this time.
Easement: A right held by one property owner to make use of the land of another for a limited purpose.
Equity: The amount of an Asset really owned, for example, if the house is worth $300,000 and the mortgage is $250,000 then the equity is $50,000.
Fixed Interest: An interest rate is set for a fixed term, and there may be penalties to repay the money if the fixed term is broken.
Guarantor: A person or persons willing to support another person's debt.
Interest Only Loan: A loan where the principal is repaid at the end of the loan term and interest only is repaid during the term of the loan.
LAQC: (Loss Attributing Qualifying Company) A type of company that allows losses to be offset against personal income tax. Often used for the purchase of investment property.
Liabilities: A person's debts.
Loan to Value Ratio (LVR): The amount owned, against the value of the asset.
Mortgagee: The lender.
Mortgagor: The borrower.
Negative Gearing: A tax-effective investment strategy giving investor a net tax loss from property investment to offset against other income.
Official Cash Rate: The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank to meet the inflation target.
Principal: The capital sum borrowed.
Principal and Interest: A loan where both the principal and interest are repaid together on a regular basis. (P & I)
Security: An asset that guarantees the lender their loan until it is fully repaid. Usually property such as real estate is offered as security.
Settlement Date: (or drawdown date) Date on which the new owner finalises payment and takes possession of the property.
Strata Title: Similar to Freehold title but usually over units. With a freehold title the land is owned plus everything thereon, but with a Strata Title only a particular unit is owned.
Survey: A plan that shows the building position and boundaries on a block of land.
Trustee: Person responsible for investing money on behalf of a trust or individual or individuals.
Valuation: A report giving a professional opinion of the value of the property.
Variable Interest Rate: Also known as floating rate. An interest rate that varies during the term of the loan, usually influenced by the official cash rate.
Zoning: A Certificate confirming the permitted uses of the land.