| A |
|
| AAPR |
Also known as the mortgage comparison
rate or true rate. Used to compare the actual rate
of a loan, taking into account the nominal interest
rate per annum, the compounding frequency and upfront
and ongoing fees, as outlined in the Consumer Credit
Code. |
| ABA |
Australian Bankers' Association |
| ABIO |
The Australian Banking Industry Ombudsman
(ABIO) provides an avenue through which customers
can make complaints about their bank and have them
dealt with independently. |
| Acceptance |
To agree to the terms of an offer or
contract. |
| Access |
The ways in which you are able to get
to your funds e.g. ATM, EFTPOS, Internet Banking,
Telephone Banking, Cheque Book |
| Accrued Interest
|
Interest you have earned or incurred
that is yet to be paid or charged. |
| Additional Repayments
|
Extra funds paid into the loan over
and above the minimum prescribed repayments. |
| Adjustments |
The process of allocating expenses
(Council, electricity, phone, water rates) on settlement
day that the seller has paid for but not used, and
which the buyer has not used but will be billed
for. |
| Affordability |
Housing affordability is measured by
an index known as the Housing Affordability Index,
which is the ratio of average household disposable
income to the income, required to meet payments
of a typical dwelling. The higher the number, the
more affordable property is. |
| Agent |
Person or body authorised to act on
behalf of a client in the sale, purchase or management
of property. |
| All-in-one Loan |
A loan, generally variable, that allows
you to deposit all of your income into the loan
account and then withdraw money from the loan account
for all your day to day purchases and transactions.
The longer spare funds stay in the account, the
greater the interest savings. |
| Allotment |
A Block of land created out of a larger
area. |
| Amortisation Period |
The period of time one has to repay
a loan at the arranged terms. |
| Annual Percentage
Rate |
(APR) the advertised rate of interest
per annum. |
| Applicant(s) |
Loan Application: The person(s) that
will have a debt to the lending institution once
the funds become available.FHOG Application: A person(s)
that, on completion of the purchase of the property
concerned, will be an owner of that property. |
| Application Fees |
Fees charged to cover or partially
cover the lender's internal costs of setting up
a loan approval for a home buyer. |
| Appraised Value |
Estimate of the value of a property
being used as security for a loan. |
| Arrears |
An overdue account yet to be paid. |
| Assets |
Money, property or goods owned. |
| At Call |
An account from which money can be
withdrawn immediately. |
| ATM |
Automatic Teller Machine |
| Auction |
Public sale of property with ownership
going to the highest bidder, subject to a reserve
price being reached. |
| B |
|
| BAD |
(Bank Account Debits tax) State or
Territory government tax (except ACT) on withdrawals
from accounts on which a cheque may be drawn. |
| Bad Debt |
A debt with little chance of being
recovered and written off as a loss. |
| Balance Sheet |
A statement of assets, liabilities
and net equity for an enterprise at a point of time. |
| Balloon Payment |
A large loan repayment to clear a debt. |
| Bank Cheque |
A cheque that draws money specifically
from funds you own held in a bank. |
| Bankruptcy |
When a debtor has his/her estate placed
into the hands of a receiver who has the responsibility
for its distribution. |
| Basic Variable |
A variable home loan at a reduced rate
but generally with fewer features than a standard
variable. |
| Bearer |
Person presenting a cheque to a bank. |
| Bill of Sale |
A written agreement whereby ownership
is transferred but the original owner is allowed
to retain possession. |
| Body Corporate |
A corporation of the owners of units
within a strata building. They form a self-elected
council for the management of the building and common
areas. |
| Break Costs |
Penalties charged when a loan is paid
off before the end of its term. Generally applies
to fixed loans. |
| Bridging Finance |
A short-term loan that covers a financial
gap between the purchase of a new property and the
sale of an old property. |
| Building Contract |
This is a standard Queensland building
contract which must be supplied to the lender before
funds can be drawn down. Unlike Contracts to purchase
established homes, a building contract dose not
have a finance clause so it is a good idea to get
a pre-approval from the lender in place before signing. |
| Building Inspections
|
An inspection generally carried out
prior to the purchase of a property to ensure the
building is structurally sound. |
| Building Regulations |
The standards formulated by local councils
to control the quality of buildings. |
| Building Society
|
Institutions operating in a similar
fashion to banks - ie they take deposits and provide
loans. Customers are 'members' |
| C
|
|
| Calculated |
The frequency at which interest is
determined. It is usually calculated on a daily,
weekly or monthly basis. |
| Capital |
The current value of your long-term
assets e.g. house, property, business. |
| Capital Gain |
The monetary gain obtained when you
sell an asset for more than you paid for it. |
| Capital gains tax |
Federal tax on the monetary gain made
on the sale of an asset bought and sold after September
1985. |
| Capitalising Interest
|
When interest payable is accrued and
added to the total debt payable rather than being
paid as it is charged. |
| Capped Loan |
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. |
| Caveat |
The Latin for 'beware'. Usually it
is in the form of a contract clause that stipulates
a particular requirement. |
| Caveat Emptor |
Latin for 'let the buyer beware', or
in English 'you pay your money and you takes your
chances'.... |
| Certificate of
Title |
This document details the land dimensions
and ownership details, and whether there are any
encumbrances on it. |
| Charged |
The frequency at which interest is
added to the loan balance. This can differ from
the frequency at which it is calculated. On many
loans, interest is calculated daily but charged
monthly. |
| Chattels |
Chattels are personal property. There
are two types: Real chattels are buildings and fixtures.
Personal chattels are clothes and furniture. |
| Collared Rate |
A variable rate loan with a set upper
and lower limit beyond which the interest rate cannot
move past. |
| Combination Loans |
Where various loans come under the
same banner to form one loan. May have a portion
variable, fixed or even a portion as a line of credit.
Also known as split loans. |
| Commission |
A fee payable to the real estate agent,
by the vendor, for the sale of property. |
| Common Property |
An area used by many, not an individual.
Owned by the tenants in common. Apartments are not
individually owned. Owners instead have a stake
in the company as a whole. |
| Company Title |
A property title that applies when
owners of units in a block form a company. |
| Comparison Rate |
Also known as 'true rate.' Used to
compare the actual rate of a loan, taking into account
nominal interest rate per annum, the compounding
frequency and upfront and ongoing fees, as outlined
in the Consumer Credit Code. |
| Compound Interest
|
Interest that is paid on both the accumulated
interest as well as on the original principal. |
| Construction Loans
|
A loan specifically granted for the
purpose of funding the building of a new dwelling.
You are generally able to draw money as required,
so you can pay as necessary. |
| Consumer Credit
Code |
An Act of Parliament governing the
relationship between borrowers and lenders. |
| Contract |
A legally enforceable agreement between
individuals or entities. In real estate, contracts
are exchanged when the deposit is paid. |
| Contract of Sale |
A written agreement outlining the terms
and conditions for the purchase or sale of property. |
| Conveyancing |
The legal process for the transferal
of ownership of real estate. |
| Countersigned |
Additional signature or signatures
to guarantee the validity of a document. |
| Covenant |
Terms and conditions that specify the
usage of a block of land or the buildings on it. |
| Cover Note |
A note of temporary property insurance
before the implementation of a formal policy. |
| CRAA |
(Credit Reference Association of Australia)
the body which holds credit details on all of us! |
| Credit |
Borrowed money to be paid back under
an arrangement with a lender. Also, a sum of money
paid into an account. |
| Credit Card Sweep |
Monthly automatic payment from a nominated
account to pay the balance owing on your credit
card. This is a facility that can be attached to
some loan types (mostly Line of Credit loans) |
| Credit Limit |
The maximum overdraft a borrower may
have on an account e.g. a credit card account. |
| Credit Union |
A co-operative which is owned and controlled
by the people who use its services, which are similar
to that of a bank |
| Creditor |
A party to whom money is owed. |
| Crossed Cheque |
A cheque with two parallel vertical
lines across it to specify that the cheque must
be paid into an account and cannot be cashed. |
| D |
| Daily Interest |
Interest calculated on a daily basis
- therefore varies according to daily account balance. |
| Debit |
An account entry to charge a withdrawal
to a specified account. |
| Debtor |
Someone who owes money to someone else. |
| Deed |
A legal document that states an agreement
or obligation regarding a property. |
| Default |
Failure to meet debt payment on a due
date. |
| Default Rate |
The rate a loan rolls/moves to automatically
at the end of any fixed period. |
| Deferred Establishment
Fee |
Charged when you pay out your loan
within a short period of taking it out, such as
three years. |
| Deposit Bonds |
Guarantees that the purchaser of a
property will pay the full deposit by the due date.
Institutions providing deposit bonds act as a guarantor
that payment will be made. They are often used as
surety when cash isn't readily available at short
notice. |
| Discharge Fee |
See mortgage discharge fee |
| Disposable Income |
Any income left over after all known
expenses have been met e.g. mortgage payments, bills. |
| Draw Down |
To access available loan funds, especially
referring to lines of credit where the limit is
set and you can use the funds as required. |
| E |
| Early Termination
Charges |
Any fees and charges you may incur
by paying out a loan early. |
| Easement |
A right to use a corridor or passage
of land which is owned by another. |
| EFTPOS |
(Electronic Funds Transfer Point of
Sale) This facility allows you to use your ATM card
to make purchases and often withdraw cash. |
| Encumbrance |
An outstanding liability or charge
on a property. |
| End Loan |
Pertains to bridging finance - it is
the loan amount you are left with after you have
sold your existing home and paid the proceeds towards
your bridging loan |
| Endorse |
To sign the back of a cheque to confirm
or transfer its ownership to someone else. |
| Equity |
The percentage or amount of an asset
actually owned. |
| Equity Loan |
A loan secured by the part of the value
of an asset (usually house) which you own. |
| Equity Mortgage |
A loan secured by the part of the value
of an asset (usually house) which you own. |
| ERIC |
Effective Rate of Interest plus Costs |
| Establishment Fees |
Lending body fees which may or may
not be charged to set up a loan. |
| ETIA |
Early Termination Interest Adjustments |
| Exchange of Contract |
The legal point of time when the vendor
and purchaser swap documentation and start enquiries
with a view to settlement. |
| Exit Fees |
See 'break costs'. |
| F
|
| FHOG |
First Home Owner Grant. This is a $7000
grant that is made available, usually at the time
of settlement, for first home buyers |
| FID |
(Financial Institutions Duty) state
duty on the receipts of financial institutions. |
| Fittings |
Items that can be removed from a property
without causing damage to it. |
| Fixed Interest |
An interest rate set for an agreed
term. |
| Fixtures |
These are items that would cause damage
to a property if removed. Their removal must be
stipulated in the contract of sale and any damage
made good by the seller. |
| Freehold |
The dwelling and the land on which
it stands is owned by the owner until they choose
to sell it. |
| Friendly Societies
|
Customers make contributions to a fund
which will provide them with some future benefit,
similar to a life fund. Many offer loans and deposit
facilities. |
| Frozen Account |
An account in which all transactions
have been suspended. |
| G |
| Garnishee |
To legally divert a part or whole of
someone's money or property to someone else. |
| Gazumping |
When your offer on a home has been
accepted (but not yet paid) and another party comes
in at a higher price and secures the sale. |
| Gearing |
The ratio of your own money and borrowed
funds in an investment. If a property is 'highly
geared' then it has a high ration of borrowed funds
compared to ownership. |
| GiroPost |
A facility allowing you to conduct
banking transactions through the post office. |
| GST |
Goods and Services Tax, to be implemented
in July 2000 at 10 percent. |
| Guarantee |
A promise made as bound by the terms
of a contract. |
| Guarantor |
A party who agrees to be responsible
for the payment of another party's debts. |
| H |
|
| Highest Bid |
The top price offered by a bidder at
auction. If the reserve price is not reached and
the property is passed in, the highest bidder is
given the first option to negotiate with the vendor. |
| Holding Deposit |
A refundable deposit based on the goodwill
of the buyer to go ahead with the purchase. |
| Home |
A building affixed to land that may
lawfully be used as a place of residenceand is in
the Commissioner's opinion, a suitable building
for use as a placeof residence. |
| Home Building Contract |
A contract under which a builder agrees
to build a home from the start of thebuilding to
when it is ready for occupancy. |
| Home owner |
A person who holds a relevant interest
in land on which a home is built. |
| Hotline |
Lender's information line number, usually
a 1800 (freecall) number or a 13 (local call) number.
Often connects you to a call centre intended to
answer your queries rapidly. |
| Housing Affordability
Index |
The ratio of average household disposable
income to the income required to meet payments on
a typical dwelling. The higher the number, the more
affordable property is. |
| I |
|
| ILR |
(Indicator Lending Rate) the base rate
on which interest rates for variable rate overdrafts
and term loans are set. |
| Inclusions |
Items included with the property e.g.
light fittings, fridge, etc. |
| Income Statement
|
A statement of income and expenditure
for a period, usually a year. |
| Interest |
The lending body's charge for the use
of funds or the return on deposited funds. See daily
interest and monthly interest. |
| Interest Adjustment |
When additional repayments are made
on a fixed loan, an interest adjustment cost is
sometimes charged to compensate the lender for loss
of interest revenue. |
| Interest Only |
Usually a short-term arrangement whereby
payments are made on the interest only, not the
principal. |
| Interest Only Loan |
A loan where the principal is paid
back at the end of the term and only interest is
paid during the term. The loans are usually for
a short term of one to five years. |
| Internal Rate of
Return |
A measure of the return on an 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. |
| Internet Banking |
When banking transactions such as transfers,
payments and often home loan applications can be
made via the Internet. |
| Introductory Loan |
A loan is offered at a reduced rate
for an introductory period (usually no longer than
15 months) to new borrowers. |
| Inventory |
A list of items included with the property
e.g. furniture, movable items, etc. |
| Investment Loan
|
A loan used for the purchase of an
investment property. |
| Investment Property
|
A property purchased for the sole purpose
of earning a return on the investment, either in
the form of rent or capital gain. |
| J
|
| Joint Tenants |
Equal holding of property between two
or more persons. If one party dies, their share
passes to the survivor/s. |
| L
|
| Land Tax |
A State Government tax charged to the
owners of any investment property over a stipulated
value, and to the owners of any-occupier properties
valued above a higher threshold. |
| Land Transfer Fee
|
A State Government tax assessed on
the selling price of a property, generally around
$60. |
| Lease |
A document granting a period of tenancy
of a property under specific terms and conditions. |
| Lenders Mortgage
Insurance |
A form of insurance taken out by the
lender to cover themselves in the event that the
borrower defaults on their loan and the sale of
the property is unable to cover the outstanding
amount. Mortgage insurance premiums are usually
payable by the borrower when the amount borrowed
is over 80 percent of the property value and sometimes
at lower loan to valuation ratios. |
| Liabilities |
Someone's debts or obligations. |
| Lien |
The right to hold property as security
against a debt or loan. |
| Line of Credit |
A flexible loan arrangement with a
specified ceiling to be used at a customer's discretion. |
| Loan Comparison
System |
A computer program designed to compare
the true cost of different loans. |
| Loan Maintenance
Fee |
A loan management fee charged over
the life of the loan. Often referred to as an ongoing
fee. |
| Loan Security Duty |
See mortgage stamp duty. |
| Loan to Valuation
Ratio |
(LVR) the ratio of the amount lent
to the valuation of the security (usually the house).
|
| M
|
| Margin |
This is the difference between the
lender's interest indicator rate (or other reference
rate) and the rate actually charged to borrowers.
|
| Maturity |
The date a debt or investment must
be paid in full. |
| Maximum Loan Amount
|
The maximum loan value which can be
borrowed. |
| minimum loan amount
|
The minimum loan value which can be
borrowed. |
| Mortgage |
A form of security for a loan usually
taken over real estate. The lender, the mortgagee,
has the right to take the real estate if the mortgagor
fails to repay the loan. |
| Mortgage Brokers |
A person or organisation marketing
numerous loans from a panel of lenders. They offer
a service where they will select the best loan or
loans for borrowers from this selection. |
| Mortgage comparison
rate |
Also known as the true rate. Used to
compare the actual rate of a loan, taking into account
the nominal interest rate per annum, the compounding
frequency and upfront and ongoing fees, as outlined
in the Consumer Credit Code. |
| Mortgage Discharge
Fee |
An administration fee to cover the
costs (e.g. documents) incurred in winding up a
loan. |
| Mortgage Intermediaries
|
Institutions such as mortgage managers
who are responsible for marketing and selling loans
provided by mortgage originators. |
| Mortgage Manager |
A company responsible for managing
every facet of a borrower's loan. Often sources
loans from mortgage originators. |
| Mortgage Offset
Account
|
A savings account run in conjunction
with a home loan. The interest 'earned' on the account
is applied to the interest paid on the loan to reduce
the interest payable on your mortgage. A 100 percent
offset is where the interest rates earned and paid
are the same. A partial offset account is where
the interest rate earned on the offset account is
only a portion of the rate paid on the home loan. |
| Mortgage Originator |
Retail and more often wholesale lender
who sources securitised funds in order to package
them as loans. |
| Mortgage Protection
Insurance |
Not to be confused with mortgage insurance,
this covers borrowers' loan repayments in the event
that they are not able to meet them through illness
or redundancy, for example. |
| Mortgage Registration
Fee |
A State Government charge for the registration
of a loan, usually around $100. |
| Mortgage Stamp
Duty |
A State Government tax assessed on
the dollar value of a mortgage. |
| Mortgagee |
The lender of funds. |
| Mortgagor |
The person borrowing money in the terms
of a mortgage. |
| Mutual Societies
|
Institutions operating in a similar
fashion to banks - ie they take deposits and provide
loans. Customers are 'members' and have ownership
in the institution - building societies come under
this banner. |
| N
|
| Natural Person |
A person, not a company or trust. |
| Negative Gearing |
Where the return on an investment is
insufficient to meet the interest costs of the loan
used to fund the investment. |
| Notifiable Event |
Applicants must notify the Commissioner
of State Revenue in writing of anychange in circumstances
that may affect their eligibility for the grant,
suchas if the residency requirement is not met. |
| O |
| Off the Plan |
The purchase of a property, often an
apartment, before it has been completed i.e. after
only having seen the plans, not the finished product. |
| Offer to Purchase |
A legal agreement that details a specific
price for the purchase of a specific property. |
| Offset Account |
A savings account run in conjunction
with a home loan. The interest 'earned' on the account
is applied to the interest paid on the loan to reduce
the interest payable on your mortgage. A 100 percent
offset is where the interest rates earned and paid
are the same. A partial offset account is where
the interest rate earned on the offset account is
only a portion of the rate paid on the home loan. |
| Old System Title |
(Common law title) consists of a 'chain'
of the title documents stretching back to the original
owner. |
| Ombudsman |
the Australian Banking Industry Ombudsman
(ABIO) provides an avenue through which customers
can make complaints about their bank and have them
dealt with independently. |
| Ongoing Fee |
Any loan maintenance fee charged regularly
over the life of a loan. |
| Online Application
(form)
|
The ability to apply for a loan via
an application form on a lender's website. |
| Option to Buy |
A legally binding document which gives
a person, for a fee, the right to buy something
usually within a specific time frame at a specific
price. |
| Overdraft |
A pre-arranged limit to which a person
can exceed an account balance. |
| Owner-builder |
An owner of land who builds a home,
or has a home built, on the land without entering
into a comprehensive home building contract. |
| P
|
| Passed In |
A property is 'passed in' at auction
if the highest bid fails to meet the reserve price
set by the vendor. |
| Payee |
The person or entity to which a cheque
is payable. |
| Permanent Resident |
Holder of an Australian permanent visa |
| Phone Banking |
When banking transactions such as transfers,
payments and deposits can be made over the phone,
often by an automated phone system. |
| Plan |
Detailed illustration of a house that
shows the internal layout and dimensions and the
position of the house on the land. |
| Portability |
Where a new property may be substituted
as security for an existing loan. |
| Principal |
The capital sum borrowed on which interest
is paid. |
| Principal and Interest
Loan |
A loan in which both the principal
and the interest are repaid during the term of the
loan. |
| Private Sale |
The sale of a property without an estate
agent. |
| Private Treaty
Sale |
A property sale where the buyer negotiates
on a price set by the seller. |
| Progress Schedule |
A schedule of payments out lined by
the lender. Each payment is made only once the required
work completed by the builder is verified by the
borrower and usually a valuer. |
| R |
| Rebate |
A refund, 'cash back' or monetary incentive
eg the first home-buyers rebate or tax rebate. |
| Redraw Facility |
A loan facility whereby you can make
additional repayments on your loan and then access
these extra funds when necessary. They will often
have limitations such as a minimum redraw amount
and a fee for each withdrawal. |
| Refinancing |
To replace or extend an existing loan
with funds from the same institution or another. |
| Relevant interest |
FHOG Application:
A relevant interest in land is:
(a) an estate in fee simple in the land; or
(b) a life estate in the land approved by the Commissioner;
or
(c) a perpetual lease of the land granted by the
Commonwealth or the State; or
(d) a leasehold interest in the land granted by
the Commonwealth or the State that may be converted
under the terms of the lease or by statute into
an estate in fee simple; or
(e) a term lease for pastoral purposes granted under
the Land Act 1994: or
(f) an interest as a purchaser under - (i) a contract
for the purchase from the Commonwealth or the State,
or a Commonwealth or State instrumentality or authority,
of an estate in fee simple in the land by installments;
or (ii) an installment contract under the Property
Law Act 1974, part 6, division 4, for the purchase
of an estate in fee simple in the land; or
(g) a licence or right of occupancy granted by the
Commonwealth or the State that gives, in the Commissioner's
opinion, the licensee or the holder of the right
reasonable security of tenure; or
(h) an interest in a company's shares if the Commissioner
is satisfied that - (i) the interest entitles the
holder of the interest to exclusive occupation of
a specified home owned by the company; and (ii)
the value of the shares is not less than the value
of the company's interest in the home. |
| Rental Guarantee |
A promise by the developer guaranteeing
a certain level of return on an investment property.
Usually stated as a percentage of the purchase price,
it generally relates to investment properties purchased
off the plan. |
| Repayment Maximum/Minimum |
The max/min percentage of income which
a lender will allow to be committed to the Repayment
of a loan. |
| Requisitions on
Title |
A process by which the buyer requests
additional information about the title of the property
from the seller. |
| Reserve Price |
Specified minimum price acceptable
to a seller at auction. |
| Residential Investment
Loan |
A loan granted to purchase a property
intended for investment purposes (for example, to
be rented out) as opposed to owner-occupied purposes. |
| Residential Property |
Land on which there is a building which
is a lawfully occupied residence orsuitable for
occupation as a residence. |
| Right of Way |
Can be either somebody's right to cross
other property or a general pathway across your
land. |
| Rise and Fall Clause |
A building contract clause that allows
the final pricing to move up or down according to
the fluctuations of material prices or wages. |
| S
|
| Search |
An examination
to confirm that a vendor is in a position to sell
a property and that there are no encumbrances
on it. |
| Securitisation |
The process of taking
a pool of diverse assets such as different home
loans and converting them into a tradeable security
such a bond which investors can then purchase
and trade. |
| Security |
An asset that guarantees
the lender their borrowings until the loan is
repaid in full. Usually the property is offered
to secure the loan. |
| Semi-detached |
Two houses that share
a common wall or walls. |
| Settlement
Date |
Date on which the new
owner finalises payment and assumes possession. |
| Signatory |
A person authorised to
utilise an account. |
| Solicitors
Mortgages |
Mortgages offered through
solicitors firms. Some firms will take an active
part in managing the loan, while others merely
set up the loan. Generally offered at higher rates
than other lenders, these loans are normally short
term. |
| Split
Loan |
See combination loan |
| Spouse |
A person to whom the applicant is married,
or with whom the applicant hasbeen cohabiting, on
a genuine domestic basis in a relationship of de
factomarriage for at least 2 years at the time the
application is made. |
| Stamp
Duty on Loan |
A State Government tax
assessed on the amount of a mortgage. |
| Stamp
Duty on Property Purchase |
A State Government tax
assessed on the selling price of the property. |
| Standard
Variable |
A variable home loan,
usually with comprehensive features (as opposed
to a basic variable). This is often the variable
rate fixed rates roll to at the end of their fixed
term. |
| Stepped
|
A stepped account is
one in which different amounts of interest are
paid on different portions of the account. e.g.
2 percent on the first $1,000 and 3 percent on
the second $1,000. |
| Strata
Title |
This title gives you
ownership of a 'unit' of a larger building which
you may sell, lease or transfer at your discretion.
Also entitles you to membership of the body corporate. |
| Stratum
Title |
A title that records
your ownership of a 'unit' of a larger property.
Unlike a Strata Title, the owner becomes a shareholder
in the company that manages the common area, not
just a member. |
| Survey |
A plan that shows the
boundaries of, and the building position within,
a block of land. |
| Susceptibility
Report |
Shows likelihood of future
pest infestations. |
| T
|
|
| Tenants
in Common |
The equal or unequal
holding of property by two or more persons. If
one party dies, the property is divided according
to law. |
| Term |
The length of a home
loan or a specific portion within that loan. |
| Term
Deposit |
Often called a fixed
interest account - a type of savings account where
the size of the deposit, the interest rate and
the length of time the money is deposited for
are all fixed. |
| Title
Fees |
Payable to the states'
Land Title Office for the title search, transfer
of property ownership, registration of the new
mortgage and discharge of the old one. |
| Title
Search |
Process to ensure that
the vendor has the right to sell and transfer
ownership. |
| Torrens
Title |
Records your ownership
of a piece of property. You are lawfully entitled
to lease, sell or dispose of the property as you
desire. Also known as Certificate of Title. |
| Town
house |
Usually a two storey
dwelling registered under a strata title. |
| Transaction
Fees |
Charges for any transactions
conducted i.e. withdrawals, transfers, deposits.
|
| Transfer
|
A document registered
with the Land Titles Office that confirms the
change of ownership as noted on the Certificate
of Title. |
| True
Rate |
Also known as the mortgage
comparison rate. Used to compare the actual rate
of a loan, taking into account the nominal interest
rate per annum, the compounding frequency and
upfront and ongoing fees, as outlined in the Consumer
Credit Code. |
| U |
|
| Unencumbered |
A property free of liabilities,
encumbrances or restrictions. |
| V
|
|
| Valuation
|
A report as required
by the lender, detailing a professional opinion
of the property's value. |
| Variable
Interest Rate |
A rate that varies in
accordance with the rates in the marketplace. |
| Vendor |
Party who offers a property
for sale. |
| Vendor
Statement |
A statement by the seller
to the buyer detailing material particulars regarding
the property in question. |
| Villa |
A style of housing, often
an attached dwelling. |
| Z |
|
| Zoning |
Local authority guidelines
as to the permitted uses of land. |
