A B C D E F G H I L M N O P R S T U V

A
AAPR: The Average Annual Percentage Rate is a method of averaging out an interested rate payable over a given period including all fees in order to compare various mortgage rates.
Application fees: The fees generally associated with applying for a mortgage.
Appreciation: The increase in value of property due to market conditions.
Assets: Money or property owned.
Amortisation: The gradual reduction of debt by systematic payments (i.e. a home loan).
Auction: A method of selling a property where bids are called for and the property is sold to the highest bidder (if the reserve price is met).

B
Body corporate: The corporation of owners of a block of flats or units.
Bridging finance: A loan to assist you cover your mortgage costs if you've bought a new property, but haven't sold your previous property and need to arrange short-term finance until you have funds available from the property you have sold.

C
CCR: Compulsory Comparison Rate.
Capital gains: The gain from selling a capital asset (such as a property) at a value higher than it was bought.
Capital gain tax: The tax levied by the government on any gain you make through selling a capital asset.
Capped loan: Similar to a fixed-term loan, but can fall if rates fall.
Certificate of Title: Legal document which identifies who owns the title (land).
Contract of Sale: A legal document outlining the terms of the sale of a property.
Conveyance: The transfer of ownership of a property from the seller to the buyer.
Conveyancing: The legal process of transferring ownership of a property.
Cover note: A cover note provides immediate insurance coverage for the period until the official contract with the insurer is completed.
Conditional approval: In relation to applying for a home loan, generally means the home loan is approved subject to certain conditions being met. These conditions typically include proof of income, proof of employment, property valuation or meeting Lenders Mortgage Insurance underwriting criteria
Consumer Credit Code: Laws which protect the consumer by making sure all lenders adhere to the same rules when lending money.
Cooling-off period: A brief period after a contract is made where a purchaser may cancel without penalty.

D
Debtor: The person who owes money.
Debt: Money you owe.
Deposit bond: A guarantee that the purchaser will pay the full deposit by the due date.
Deed: A legal document that states an agreement or obligation regarding property.
Default: Missing a contracted payment on your mortgage or some other breach of an obligation a person owes to another.
Disbursements: Fees paid on your behalf by a solicitor or conveyancer.
Discharge fees: Fees associated with discharging or ending your mortgage.
Draw down: When the money is transferred from the lender to the borrower when the loan has settled.

E
Easement: The right to use part of the land which is owned by another person (e.g. for access to services or another property).
Encumbrance: A liability or claim that affects the property title.
Equity: The value an owner has in property over and above the debts against it.
Establishment fees: The cost levied by a lender to establish a mortgage.
Exit/prepayment/break fees: Fees levied by a lender to conclude a mortgage ahead of its contracted period. Where a loan is paid out quickly after settlement (i.e. less than three years) the lender may charge a "deferred establishment fee". For example, where the interest rate is fixed and the variable rate is lower than the fixed rate, early repayment may result in a "break fee".

F
First Home Owners Grant: A Federal Government payment designed to assist fist home buyers buy a property.
Fixed rate: Where a lender sets the rate of interest it charges for a fixed period of time and is "locked in" for that period.
Freehold: Owning both the property and the land on which the property exists.

G
Guarantee: An agreement that a person is responsible for the debt or obligation of another.
Guarantor: The person who agrees to pay your mortgage loan or other debt obligation if you are unable.

H
Honeymoon period/Introductory rate: A home loan which is offered at a low interest rate for an introductory period, usually six months or a year.

I
Installment: The amount of a periodic repayment of a debt.
Interest-only loan: A loan to repay the interest on a borrowed amount without paying off the principal (or borrowed amount) as well.
Interest: A fee paid on borrowed capital/money.
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.

L
LVR (loan to value ratio): The amount of the loan which is still outstanding as a percentage of the property's value.
Line of credit: A type of loan in which a borrower can access credit as needed, up to a specified maximum amount.
Low-doc loan: A type of home loan where not all of the usual proof of income documents are required.
Lump sum payment: An extra payment made by the borrower, in addition to the regular loan repayments.
LMI (Lenders mortgage insurance): Insurance which protects the lender if the borrower can't repay the mortgage.

M
Mortgage broker: An individual or organisation who organises or brokers loans on your behalf from a group of lenders.
Mortgage: The contract between a borrower and a lender whereby you put up your new house and land as security for the loan.
Mortgage protection insurance: Insurance to protect the borrower in the event the mortgage payments can't be met.
Mortgage offset account: A savings account linked with a home loan where the interest earned on the savings is used to reduce the interest paid on the loan.
Mortgage registration fee: Government charge for the registration of a loan.
Mortgagee: The person or organisation lending the money and taking a mortgage.
Mortgagor: The person or organisation who borrows the money and gives a mortgage.

N
Negative gearing: When the cost of maintaining your investment property outweighs the income you receive from it.

O
Owner-occupied: A property which is being bought to be lived in by the purchaser.

P
Passed in: When a property does not meet its reserve price at auction and the property fails to sell.
Principal: The amount of money borrowed.
Private treaty sale: The sale of property, usually through an estate agent, by negotiation.

R
Redraw facility: A type of loan where the borrower can make additional payments and then access those funds when required.
Refinance: Paying off an existing loan with the proceeds from a new loan (normally when moving your loan from one lender to another).
Reserve price: The minimum price a vendor is willing to sell a property for at auction.

S
Security: The documentation (often a mortgage) held by the lender supporting the loan for the property which gives rights to a lender in relation to that property in the event of a default by the borrower.
Settlement: When the loan funds are advanced to you or your legal representative.
Stamp duty: State tax payable on the sale of a property.
Strata title: A form of title which is used for units and townhouses.

T
Title deed: The document which discloses the legal description and ownership of a property.
Transfer: The legal document which transfers ownership of the property from seller to buyer.

U
Unconditional approval: In relation to applying for a home loan, generally means all the conditions relating to the loan have been met and the lender is prepared to advance the loan.

V
Variable rate: An interest rate which is subject to change by the lender.