Additional Repayments
One of the best ways to reduce the cost of your
loan. Make sure your loan allows you to make additional
repayments without penalty. Most fixed loans don't
allow you to make additional repayments.
Arrears
Being overdue in your repayments with the lender.
Application Fee
Also called an Establishment Fee. It covers the
lender's basic costs in setting up a home loan -
such as legal fees and property valuation charges.
It is usually refunded if the loan is declined.
Appraised value
An estimated value of the property
to be offered as security for your new home loan.
The appraisal is usually undertaken by the lending
institution for lending purposes and may not actually
reflect the true market value.
Basic Rate
Applied to loans commonly called No Frills Loans.
These are generally cheaper than standard Variable
Rate Loans, but do not have features such as a redraw
facility or mortgage offsets. For more information
contact your Money St specialist.
Break
Cost
A charge for breaking a Fixed Rate Loan before
the expiry of the fixed rate period. Normally only
charged if your fixed loan interest rate is higher
than the prevailing market rate.
Bridging
Finance
A short term loan to cover a funding gap between
the purchase of a new property and sale of a current
one. The lender you choose may require
a firm contract for the sale of your existing property.
For more details, contact your Money St specialist.
Capital gain
The profit made on the sale of a particular property
if it is sold for more than the original purchase
price. Normally payable on investment properties.
Certificate of Title
A document
proving ownership or an interest in land. It sets
out the Crown description of the land and shows
any registered interests such as mortgagees, charges
and caveats. It also shows any restrictive covenants
and easements which affect the property.
Company
Title
This Title applies when a company owns the
whole of the property. By purchasing shares in
the company, the purchaser obtains an entitlement
to occupy a particular part of the property. See
your solicitor before buying.
Compound Interest
Interest
which is paid on accumulated interest as well as
the original principal invested.
Conveyancing
The
legal process where ownership of real estate (Property)
is transferred from one party to another.
It's
not in your glossary of terms?
If you still need an answer, and it's not provided
here, simply e-mail us with your enquiry. We will
give you the information, and update our Glossary
of Terms. E-mail us: info@moneyst.com.au
