Glossary of useful terms and definitions
The monetary gain obtained when you sell an asset for more than you paid for it.
A Federal tax on the monetary gain made on the sale of an asset acquired since 20 September 1985, unless specifically excluded.
A loan where the interest rate is not allowed to exceed a set level for a period of time but, unlike fixed rate loans, is allowed to drop.
An entry made in a land registry or court to prevent a certain step being taken (eg. the transfer of land) without notice to the person who lodged the caveat.
Latin for 'let the buyer beware'.
A document that details the title or ownership details of a property, and whether there are any encumbrances on the title. Not all States and Territories have Certificates of title.
Any property other than freehold land. Personal chattels are movable, tangible articles of property such as clothes and furniture. Chattels real include leasehold interest in land.
A group of houses or villas that share common space.
A fee payable to a real estate agent, by the vendor, for the sale of property, or by a lender or client to a third party, such as a broker, for arranging a loan.
An area used by many, not an individual. Owned by the Owners’ Corporation.
A form of right of occupancy that applies when owners of units in a block form a company and each holds shares in the company, that entitle them to occupy a defined area of land.
A nominal rate per annum calculated based on certain fees and charges together with the compounding frequency as outlined in the Consumer Credit Code (Code).
A nominal interest rate incorporating certain fees and charges to help consumers identify and compare the true cost of a home loan When shopping for a home loan, people often focus on the advertised interest rate. While this is a useful guide to what you’ll pay, it doesn’t reflect the true cost of the loan because it excludes associated fees and charges, which can vary widely between lenders. A comparison rate is a tool that helps consumers identify the true cost of a loan because it includes both the interest rate and fees and charges relating to a loan, reduced to a single percentage figure. It excludes government fees and charges that are standard across all loans. According to the Code, comparison rates must be provided for any form of fixed term credit, regulated by the Code. This includes home loans that must be repaid within a specified time period (eg. 25 years). A comparison rate allows you to compare ‘apples with apples’ and make a more informed decision when choosing a home loan. This table summarises what is considered when calculating a comparison rate.
Because different loan amounts and terms produce different comparison rates, comparison rates in advertisements must be based on a standardised amount and term that is typical of the loan being advertised. For home loans, that’s a loan of $150,000 for 25 years.
Fees, conditions, limitations and lending criteria apply. This information is of a general nature only and is not to be relied upon as being appropriate or suitable for your particular circumstances.
Interest that is paid on both the accumulated interest as well as on the original principal.
An act of Parliament governing the provisions of consumer credit.
A policy insuring household contents against theft and damage.
A legally enforceable agreement between individuals or entities. In real estate, a contract is entered into when contracts are exchanged and the deposit is paid.
A written agreement outlining the terms and conditions for the purchase or sale of property.
A person qualified and licensed to handle all documentation for the sale and or purchase of a property.
The legal process for the transferal of ownership of real estate.
Additional signature or signatures to verify the authority of the person signing.
Terms and conditions that specify the usage of a block of land or the buildings on it.
A note of temporary property insurance before the implementation of a formal policy.
Borrowed money to be paid back under an arrangement with a lender. Also, a sum of money paid into an account.
The maximum amount a borrower can use at any one time.
A party to whom money is owed.
A cheque with two parallel vertical lines across it to specify that the cheque must be paid into an account and cannot be cashed.
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