Jargon Buster

Purchasing a property or refinancing a loan doesn’t have to be overwhelming. Our team of brokers and advisers are available to help you navigate your lending and insurance needs.

To assist you through this process, we’ve compiled a list of terms here to help make sense of common mortgage and home loan jargon.

Is there a term that you’re struggling with that’s not on this list? Call our team today and we’ll answer all of your questions so you can find peace of mind and the solutions you need.

Asking Price: The listed price of the property.

Assessed Value: The valuation placed on the property.

Auction: Real estate that is sold to the highest bidder.

Body Corporate: The administrative body made of the owners of a group of units or apartments of a strata building.

Bridging Loan: A short term loan used to cover the financial gap between buying and selling.

Building Inspection: A thorough inspection by a licensed builder that evaluates the structural and mechanical condition of the property.

Buyers Market: When the demand for property is less than the supply of property the advantage shifts to the buyer.

Caveat: A warning on the title that a third party may have an interest in the property.

Certificate of Title: A description of a property that includes the name of the registered owner and any encumbrances such as mortgages and easements. Included in the contract of sale prepared by the solicitor.

Commission: A proportion of the sale price (generally a percentage) of a property paid to real estate agent for negotiating the sale.

Contract of Sale: An agreement in writing that details the terms and conditions in regards to the sale or purchase of a property.

Covenant: Terms, conditions and restrictions noted on the title.

Deposit: A percentage of the purchase price given at the time of exchange to bind the sale.

Easement: A right that someone has to use the land that belongs to another. An example is a water authority having a sewerage easement.

Exclusive Authority: A written contract that gives one real estate agent the exclusive right to sell a property in a specified time period.

Exchange of Contracts: The point at which signed contracts are physically exchanged, legally committing the buyer and the seller to the purchase and sale of a property at an agreed price.

Fixed Term: A fixed period of time a loan is taken over - Usually taken to lower the cost of the loan as much as possible.

Floating Rate: Allows the loan more flexibility - the vendor can pay down lump sums without penalty, allows the loan to be fixed at a time that suits the owner.

Listing: A written contract between an owner and a real estate agent, authorizing the agent to perform services for the sale of the owners property.

LO: Lease Option - (call or email for further explanation)

Market Value: The price at which a seller is happy to sell and a buyer is willing to buy.

Mortgage Broker: An independent professional who has the ability to approach all the available lenders in order to broker the best deal for the client.

Offer: A sum of money that a buyer offers to pay for a property.

Open Listing: A type of listing agreement in which more than one real estate agent may be employed to sell the property.

Passed In: The highest bid fails to meet the reserve price of a property at auction and therefore does not sell.

Private Sale: The sale of a property by the owner without the use of a real estate agent.

Private Treaty: The sale of a property through a real estate agent by negotiation.

Purchaser: The people looking to purchase the property.

Reserve Price: The minimum price which a seller will accept at auction.

Roll Over Date: The date a fixed term loan comes to it end. A new fixed or floating term needs to be organised.

SLO: Sandwich Lease Option - (call or email for further explanation)

Settlement: The sale of a property is finalised by the legal representatives of the vendor and the purchaser and the new owner takes possession of the property.

Valuation: A written analysis of the estimated value of the property prepared by a qualified valuer.

Vendor: The seller.

Zoning: Local authority guidelines for the permitted use of the land.

Latest News

Miller, Scott
26 October 2023

Published by Scott Miller

Do Mortgage Brokers Charge Fees In NZ.

Introduction In the realm of mortgage brokers in New Zealand, it's important to note that while many brokers do charge for their services, there are exceptions.

  • Fast process, easy to understand and amazing communication from Scott!
    Krizzia Pierard - 13 March 2024
  • Scott has been amazing in helping us purchase our first home. A wealth of knowledge and amazing communication! I am self employed and we could not have navigated this without his help. Thanks Scott!
    Kris Hoskin - 04 March 2024
  • Very impressed with the information and the way it is presented. Highly recommend Scott, he found the best option for us and kept us fully informed along the way.
    Lynne Godden - 29 February 2024
  • Scott has been amazing in helping us navigate our first home purchase. He had excellent communication and was incredibly responsive to any and all questions. Our financial literacy has increased 10-fold. We would not hesitate to recommend Scott to all our friends and family. Thanks Scott!
    Kirsten Evans - 29 February 2024
  • Scott was knowledgable, transparent and endlessly helpful throughout the entire mortgage process. As first home buyers, we would have been lost without his guidance and assistance. I highly recommend him and the team for all things mortgage and kiwisaver related.
    Rebecca Edwards - 27 February 2024

Get FREE personal mortgage and home loan advice

Email Us