Home Loans Australia Real Estate Australia Finance Australia.

Application fee: A fee paid by you to cover the costs of the lender preparing  mortgage or home loan documents.

Certificate of Title: A document that contains details the ownership and land dimensions of a property.

Conveyancing: To legally transfer property ownership from the seller’s name to your name.

Contract: An enforceable legal agreement between two or more people.

Credit Limit: The maximum amount you can borrow for any loan.

Daily Interest: Interest is calculated on a daily rate.

Default: occurs when you fail to make a loan repayment by a due date.

Early Repayment Penalty: Sometimes if a loan is repaid before the end of its full term the bank or lender may charge an additional payment fee.

Equity: The portion of the home or any assets that are owned by you. i.e. a 20% equity in the home means you have a home worth more than the outstanding mortgage by 20%.

FID: (Financial Institutions Duty) State duty on payments made to financial institutions.

Guarantor: The person giving a guarantee to make your payments on your loan if you dont or are unable to make those payments.

Loan Agreement: The contract between the Bank or lender and you the borrower.

Loan Security Duty: Stamp duty charged to register your mortgage.

Mortgagee: The bank or other lender of the money.

Mortgagor: You the borrower.

Principal: The amount still remaining on your home loan.

Principal & Interest Loan: A type of loan where you repay a portion of the principal and the accrued interest over the term of the loan by regular payments.

Redraw Facility: is the option which may be available to you such that you can receive Lump Sum payments back from your home mortgage loan.

Refinancing: The process of changing your loan from one lender to another.

Reserve Price: is the sellers minimum acceptable price at auction.

Security: A property or other asset that can be used to guarantee a loans repayment.

Settlement: Is the completion process of the sale or purchasing of a home or business property. All the final payments are completed at settlement, with the seller receiving full payment from the Bank or other lender. The lender  will receive the signed transfer documents and the mortgage papers. The lender will retain the property title deeds and the mortgage documents until the home loan is fully repaid by you. The keys to the home or property are handed over at settlement.

Settlement Date: The day that the settlement process actually happens.

Stamp Duty: is a state government tax which is payable when any property is sold. Stamp duty is calculated on the purchase price of the property and is paid by you the buyer.

Strata Title: Title that grants part ownership of a larger building. This title can be sold or transferred by the owner.

Term: The length of a mortgage or loan expressed usually in years.

Transfer: Documents which are registered with the Land Titles Office showing the change of property ownership.

Valuation: A bank or lenders official valuation the official assessed value of a property.

Variable Interest Rate A fluctuating rate of interest charged by any lenders. Variable interest rates change as the official market interest rates rise and fall.

Vendor: The person who is selling a property.

Type your home loan search here