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
27 May 2024

Published by Scott Miller

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  • Sitting in the house my husband and I own all thanks to Scott/Advanced Mortage Solutions. The expert advice and 10 step guide he walked us through made the process feel like an absolute breeze! I can say with confidence that we would not be in our dream home if it wasn’t for Scott holding our hands through it. Scott also offers great recommendations of Lawyers and Insurance brokers who have been absolutely amazing too (Shout out to the wonderful Greer at Pier Law!). Thank you so much Scott & Advanced Mortage Solutions!
    Hope F - 01 September 2025
  • I had an excellent experience working with Scott from advanced mortgage solutions towards my current mortgage. The process was made super easy and I could not recommend them enough for home loans
    Holly Coleman - 31 August 2025
  • Greg was super helpful in assisting me through my first home purchase. He made it easy and understandable for me to navigate a wealth of new information all on my own and always felt like he had my best interests in mind. The process was easy to follow thanks to Greg's clear communications and he was very generous with his time when meeting in person to answer any questions I had. I would recommend Greg to anyone needing a mortgage adviser.
    Sophie Hocart - 30 August 2025
  • I am so thankful that we had Greg as our mortgage broker. Greg went above and beyond to help us. He was super knowledgeable and helpful. He was always available to answer our questions - even when they weren’t strictly mortgage related. I would definitely recommend Greg to anyone needing a mortgage broker - especially first home buyers.
    Rose Crean - 25 August 2025
  • Greg was fantastic to work with! He made the whole process simple and explained everything clear for easy understanding. We were absolutely thrilled with the home loan transition, setup of our new banking, and even insurances. Everything went smooth and stress free. Greg's service was impeccable, and we felt completely at ease throughout. Highly recommend Greg!
    Eric Finn - 24 August 2025