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.
Published by Scott Miller
Today's announcement on Mortgage Holidays
With today’s announcement by the Finance Minister about 6-month mortgage holidays, we have been inundated by enquiries from our clients.
Scott was great, made the whole process easy.Morteza Alizadeh Dahaneh Sari and Kobra Alari - 9th October 2014 - 09 October 2014
We are very thankful for everything you did. We will 100% recommend you to our friends/family and will return if we need future support.Nicole and Daniel Payne - 27 November 2018
My wife and I have been dealing with Scott Miller for several months now, and his treatment of us and his handling of our home mortgage has been nothing short of PERFECTION.Dan and Wendy Koster - 6th August 2015 - 06 August 2015