| Access Bond |
You can draw money ( up to a predetermined amount ) from this type of home loan. |
| Administration Fee |
This fee is charged by the lending bank to cover the initial costs of processing a home loan application. |
| Agreement of Sale |
Contract stating the terms and conditions under which the property is sold |
| Assessment |
This is the bank’s assessed value of the property. It will usually be done prior to the final approval of your home loan. |
| Assessment Fee |
Cost of the administration work that accompanies an assessment. |
| Bona Fide |
Means ” in good faith” |
| Home Loan / Bond Costs |
Fees payable to the registering attorney which includes conveyancer’s fees, stamp duty and VAT. |
| Home Loan / Bond Registration |
Fee payable for the registration of a home loan in the new property owner’s name. |
| Home Loan / Bond Term |
Original term over which the home loan was taken. |
| Broker / Estate Agent |
Person or persons who bring buyers and sellers together and negotiate contracts for them. |
| Building Loan |
This type of home loan is usually issued to a buyer of vacant land for the purpose of building on the land. |
| Capped Home Loan Interest Rate |
Limits the amount the interest rate on an adjustable rate home loan can change over the life time of the home loan. |
| Collateral |
Assets that are required as security for your home loan. |
| Contract of Sale |
This is the agreement between seller and buyer covering the price, terms and conditions of the sale. |
| Conveyance |
Document used to effect a transfer. |
| Credit Profile |
A report detailing the credit history of a prospective borrower that’s used to help determine borrower creditworthiness before a home loan application will be approved. |
| Deed |
This is a legal document by which title of a property is transferred from one owner to another. |
| Default |
Term use to denote failure to make payments on a home loan. |
| Equity |
The amount by which the value of the bonded property exceeds the outstanding amount on the home loan. |
| Finance Charge |
Interest charge on a home loan |
| Fixed Home Loan Rate |
The interest rate on a home loan is fixed for an agreed period of time and will not change for that period even if the variable home loan rates rise or fall. |
| Foreclosure |
Legal process by which a bonded property may be sold to pay off a home loan that is in default. |
| Freehold |
Ownership of the property as well as the land on which the property is built on |
| Grace Period of Home Loan |
Amount of time after the due date of the home loan payment in which a payment may be made without a late penalty fee being applied. |
| Home Loan Application |
A statement of personal and financial information required by the bank when you apply for a home loan |
| Home Loan Plus Costs |
Allows borrower to lend more than 100% of the property value to cover the registration and transfer costs. |
| Interest |
Fee paid for borrowing money usually calculated as a percentage of the remaining balance of the amount borrowed. |
| Interest Rate on Home Loan |
Annual rate of interest charged on a home loan. |
| Lender |
Bank, Mortgage Company, or Mortgage Broker offering the home loan. |
| Mortgage Broker |
Individual or company that arranges home financing for borrowers. |
| Mortgage |
Agreement with the bank stating that the bank will lend you a certain amount of money in the form of a home loan that will be paid back over a period at a certain interest rate. |
| Offer to Purchase |
Offer in writing from the buyer to the seller which becomes a legal contract once it is signed by all the parties. |
| Pre-Approval |
Lenders firm commitment on a home loan. |
| Prequalification |
Process of determining the amount of home loan you are eligible for. |
| Purchase Agreement |
Contract stating the terms and agreement under which the property will be sold. |
| Refinancing |
Process of paying off one home loan with the proceeds of a new home loan on the same property. |
| Second Mortgage |
Additional mortgage placed on a property that has rights that are subordinate to the first mortgage. |
| Term of Home Loan |
Period between the beginning of the home loan and the date the entire balance of the home loan is due. |
| Title Deed |
This document gives evidence ownership of a property. |
| Underwriting |
Process of determining the risks involved in a particular home loan and establishing suitable terms and conditions for the home loan. |
