• Glossary of useful terms and definitions

  • The language and jargon used in purchasing a property can be very confusing. Here's an A-Z glossary of commonly used words and phrases, with easy-to-understand definitions for each one.
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  • I

    • Inclusions

      Items included with a property e.g. light fittings, stove, etc which must be specified in the contract of sale.

    • Income statement

      A statement of income and expenditure for a period, usually a year.

    • Interest

      The lender's charge for the use of funds, or the return on deposited funds. See also daily interest.

    • Interest only loan

      A loan where the borrower elects to make monthly repayments of interest and no principal reductions. The interest only period is limited to between 5 to 10 years depending on the product option selected by the customer and approved by the lender.  More interest is paid over the term of the loan with an interest only loan. At the end of the interest only period, repayments will change to principal and interest for the remainder of the loan term.

    • Internal rate of return

      A measure of the return on an investment (or loan) which takes into account the time value of money by showing the rate of interest at which the present value of future cash flows is equal to the cost of the investment or loan.

    • Inventory

      A list of items included with a property eg. furniture, moveable items etc.