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An advance of funds from a lender to a borrower on the agreement that the borrower pays interest on the loan, plus paying back the initial amount of the loan at or over an agreed time. |
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(Loan to Value Ratio) the ratio of the amount lent, to the valuation of the property. |
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The date a debt or investment must be paid in full. |
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A form of security for a loan usually taken over real estate. The Lender, the mortgagee has the right to take (repossess) the real estate if the mortgagor fails to repay the loan. |
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The person borrowing money in the terms of the mortgage. |
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Gearing your investment so that the cost to maintain (loan repayments, council rates, maintenance etc) out weigh the income produced by the investment, leading to a reduction in taxable income. |
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The income received by an individual AFTER TAX has been taken out. |
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The profit remaining in a business after all expenses have been taken out, but BEFORE TAX. |
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Buying a property from the plans ONLY, not the finished product. |
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Where a new property can be used as security for an existing loan, i.e. when the loan is transferred to a new security property without the need to repay the loan, reapply or restructure. |
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A written authorisation to another person, or persons, to perform certain acts for the signer, as if they were the signer. |
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The capital sum borrowed on which the interest is paid during the term of the loan. |
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A loan in which both the principal and interest components are paid during the term of the loan. |
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A person's property is "what is he or she owns to do what they like with." It may be tangible or intangible, and may be given a monetary value (house, car, goodwill). Property may be classed 'real' which relates to land or interests in land (except leaseholds) and buildings, etc or 'personal', which relates to other kinds of property such as cars, bank accounts, leasehold interests in land. |
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Borrower is able to draw on pre-paid funds. |
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To replace or extend an existing loan with funds from the same institution or another. |
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An examination to confirm that the vendor is in a position to sell the property and that there are no encumbrances on the property. |
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Is the packaging of cash flow producing assets into a marketable security, eg property, roads, bridges, etc. The process where mortgage backed securities (in the form of bonds) are sold directly into the capital markets. Investors in the bonds comprise of Superannuation funds as well as other major institutions. |
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An asset that guarantees the Lender their borrowings until the loan is repaid in full. Usually the property is offered to secure the loan. |
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Ability of borrower to make and meet the repayments of the loan, based of the borrowers expenses and income. |
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Finalisation of payment by the new owner, and assumption of possession. That's when you pick up the keys |
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Person who makes himself responsible for another's payment of debt; also known as the guarantor. |
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Property in the names of two or more persons and in which each has a separate and distinct share. When one person dies his share is NOT passed to the survivor(s) but becomes part of his estate for disposal according to his will. |
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The length of a home loan or a specific portion within that loan. |
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Security provided for a mortgage by a third party (some one different from actual borrowers) who is legally different from the borrower or debtor. |
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Registration showing the ownership of property. |
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Process to ensure that the vendor has the right to sell or transfer ownership. |
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System whereby ownership and all dealings, i.e. a Certificate of Title or Deed of Grant. Under This system a mortgage is a charge or encumbrance on the title. Registrations is compulsary to effect legal transfer of an interest in property and each time the property is sold, mortgaged, or a mortgage discharged, the transaction is recorded on the Certificate of Title. |
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A property free of liabilities, restrictions or mortgages. |
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