accelerated payment the option to make higher repayments to pay off the loan faster.

acceptance to agree to the terms of an offer or contract.

account-keeping fees are charged to cover or partially cover the lender's internal costs of administering the loan.

accrued interest interest you have earned or incurred that is yet to be paid or charged.

additional securities an asset that guarantees the lender their loan until the loan is repaid in full. Usually the property is offered to secure the loan.

adjustments the process of allocating expenses e.g. council rates, water rates, etc.

agent person or body authorised to act on behalf of a client in the sale.

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.

application fees are 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 plus any thing or property that is of value.

at call a bank account from which money can be withdrawn immediately.

auction public sale of property with ownership going to the highest bidder.

bank account debits tax (BAD) State or Territory government tax (except ACT) on withdrawals from accounts on which a cheque may be drawn.

balance sheet a statement of net assets, liabilities and equity.

balloon payment a large loan repayment usually at the end of the loan term.

bank cheque a cheque that draws money specifically from funds you own held in a bank.

banker's opinion enquiries made from one bank to another to check on a customer's reliability or credit worthiness.

bankruptcy when a debtor has his/her estate placed into the hands of a receiver who has the responsibility for its distribution.

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.

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.

baycorp credit advantage  occasionally referred to as CRAA.

building regulations the standards formulated by local councils to control the quality of buildings.

capital gain the monetary gain obtained when you sell an asset for more than you paid for it.

capital gains tax a Federal tax on the monetary gain made on the sale of an asset bought and sold after September 1985.

capital the current value of your long-term assets.

capped loan a loan where the interest rate is not allowed to exceed a set level for a period of time.

caveat emptor Latin for "let the buyer beware".

caveat Latin for "beware". Usually it is in the form of a contract clause that stipulates a particular requirement.

certificate of title this document details the land dimensions and ownership details of a property.

chattels are personal property. There are two types. Real chattels are buildings and fixtures. Personal chattels are clothes and furniture.

cluster housing group of houses that share common space.

commission a fee payable to a real estate agent.

common property an area used by many.

company title a property title that applies when owners of units in a block form a company.

compound interest interest that is paid on both the accumulated interest as well as on the original principal.

consumer credit code an act of Parliament governing the relationship between borrowers and lenders.

contract of sale a written agreement outlining the terms and conditions for the purchase or sale of property.

contract a legally enforceable agreement between individuals or entities.

conveyancing the legal process for the transferral 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 insurance before the implementation of a formal policy.

credit limit maximum amount a borrower can use at any one time.

credit borrowed money to be paid back under an arrangement with a lender.

creditor a party to whom money is owed.

daily interest is 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.

early termination payment the cost of winding up a loan early.

easement a right to use a corridor or passage of land which is owned by another.

electronic funds transfer ( EFT) electronic transfer of funds from one account to another.

encumbrance an outstanding liability or charge on a property.

endorse to sign the back of a cheque to confirm or transfer its ownership to someone else.

equity loan a loan usually secured by the proportion of the value of your house which you own.

equity mortgage a loan secured by the part of the value of an asset (usually house) which you own.

equity the amount of an asset actually owned. Net position between assets and liabilities of an asset.

establishment fees lending body fees which may or may not be charged to set up a loan.

exchange of contract the legal point of time when the vendor and purchaser swap documentation and start enquiries with a view to settlement.

financial institutions duty ( FID) 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 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 indefinitely.

frozen account an account in which all transactions have been suspended.

garnishee to legally divert a part or whole of someone's money or property to someone else.

gearing the ratio of your own money and borrowed funds in an investment.

GST Goods and Services Tax.

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.

high start loan a loan where the initial repayments are high and decrease over the term of the loan.

highest bid the top price offered by a bidder at auction. If the reserve price is not reached and the property is passed in.

holding deposit a refundable deposit demonstrating the goodwill of the buyer to go ahead with the purchase.

inclusions items included with the property e.g. light fittings.

income statement a statement of income and expenditure for a period.

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.

interest the lending body's charge for the use of funds or the return on deposited funds. See also daily interest.

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.

inventory a list of items included with a property e.g. furniture.

joint tenants equal holding of property between two or more persons. If one party dies the property passes to the other joint tennant.

land tax a State Government tax charged to the owners of any property over a stipulated value.

lease a document granting a period of tenancy of a property under specific terms and conditions.

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 pre-approval the loan is approved before the borrower bids on or offers for the property.

loan to valuation ratio (LVR) the ratio of the amount lent to the valuation of the security (usually the house).

low start loan a loan where the initial repayments are low and increase over time.

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.

max loan amount the maximum amount that can be borrowed.

max loan value ratio (LVR) maximum loan to valuation. This means the amount you can borrow expressed as a percentage of the valuation of the security (usually the property you are buying).

max term the maximum length of a home loan or a specific portion within that loan. (normally 25 or 30 years).

min fixed amount the minimum amount that can be borrowed at a fixed rate of interest.

min lump sum payment the minimum amount that can be repaid as a lump sum.

min redraw amount the minimum amount that can be redrawn from a loan.

monthly fees are the fees charged to cover or partially cover the lender's internal costs of administering the loan each month.

mortgage offset a non-interest earning account that is offset against a home loan to reduce the total interest payable.

mortgage a form of security for a loan usually taken over real estate.

mortgagee the lender of funds.

mortgagor the person borrowing money under the terms of a mortgage.

negative gearing where the return on an investment is insufficient to meet the interest costs of the loan used to fund the investment. This amount can usually be claimed as a tax deduction.

offer to purchase a legal agreement that details a specific price for the purchase of a specific property.

offset account a savings account linked to your mortgage in such a way that the interest earned on your savings is applied to reduce the interest on your mortgage.

old system title (common law title) consists of a 'chain' of the title documents stretching back to the original owner.

option to buy a legally binding document which gives a person first right of refusal on a property etc.

overdraft a pre-arranged limit to which a person can exceed an account balance.

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.

plan detailed illustration of a house that shows the internal layout and dimensions and the position of the house on the land.

portability where pre-approval can be transferred from one property to another. Saving on government loan security duty.

principal and interest loan a loan in which both the principal and the interest are repaid during the term of the loan.

principal the capital sum borrowed on which interest is paid.

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.

redraw facility indicates whether the loan allows the borrower to redraw funds.

redraw fee is charged to cover or partially cover the lender's internal costs of allowing the borower to redraw money.

refinancing to replace or extend an existing loan with funds from the same institution or another.

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.

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.

search an examination to confirm that a vendor is in a position to sell a property and that there are no encumbrances on it.

security an asset that guarantees the lender their loan 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.

split fixed/variable a split account is one in which different types of interest are paid on different portions of the account. e.g. fixed rate and variable rate.

stamp duty on transfer a State Government tax assessed on the selling price of the property.

strata title this title gives you ownership of a 'unit' of a larger building which you may sell.

survey a plan that shows the boundaries of a property.

tenants in common the equal or unequal holding of property by two or more persons. If one party dies the share of the property forms part of the estate rather than passing to the other tennant / tennants.

term deposit often called a fixed interest account - a type of savings account where the interest rate is fixed for a set period of time.

term the length of a home loan or a specific portion within that loan.

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 it.

town house usually a two storey dwelling registered under a strata title.

transfer a document registered with the Land Titles Office that confirms the change of ownership as noted on the Certificate of Title.

unencumbered a property free of liabilities.

valuation a report required by the lender detailing a professional opinion of a property's value.

variable interest rate a rate that varies in accordance with the rates in the marketplace.

vendor statement a statement by the seller to the buyer detailing material particulars regarding the property in question.

vendor party who offers a property for sale.

villa single storey attached dwelling.

zoning local government authority guidelines as to the permitted uses of land and buildings on that land.