Bridging finance
Short term finance while waiting for an existing property to sell.
Certificate of Title
A legal document that identifies ownership of land showing dimensions of land, details of mortgage, easements or encumbrances and owner's name/s.
Comparison Rate
Assists borrowers to compare loans from different lenders. It includes the interest rate, establishment fee and other upfront or ongoing charges for a loan.
Contract of Sale
A legal document prepared by the vendor’s solicitor. It sets out the property, price, seller and sets the conditions of the transaction.
Lenders Mortgage Insurance (LMI)
This is required if you borrow over 80% of the value of the property and covers the lender, not the borrower, however the borrower is required to pay the insurance premium.
Loan to Value Ratio (LVR)
This is the amount of the loan as a percentage of the home value. For example:
- $400,000 = value of home.
- $320,000 = amount of loan.
- $320,000 / $400,000 = 80% LVR.
Settlement
Completion of conveyance where the balance owing is paid and ownership passes from the vendor to the buyer.
Stamp duty
State tax paid by the purchaser, calculated as a percentage of the sale price.
Transfer
A legal document registered at the Land Titles Office which verifies change of ownership of a property.
Valuation
A report provided by a registered valuer which outlines the value of the property.
Vendor
Person selling the property.