Non-Conforming Loans Australia

With this type of product, your monthly repayments will only cover the interest element of the loan. You will typically set up another repayment vehicle eg an endowment or ISA to repay the capital element of the loan.

Individual Voluntary Arrangements.

Joint tenancy is the holding of property by two or more persons in equal shares. If one person dies, his/her share passes to the survivor.

A leaseholder holds the title to land only for a finite term i.e. the length of the lease upon payment of a consideration e.g. rent.

The actual company that provides the finance to satisfy a loan or mortgage request.

Lenders Mortgage Insurance. An insurance policy designed to make good any shortfall between the amount owed on a mortgage and the value of the mortgaged property. Provides a benefit to the lender in the event of repossession resulting from non-payment.

Loan to value ratio. This is the size of the loan or mortgage as a percentage of the value of the property or price being paid for the property e.g. A property valued at $50,000 with a mortgage of $45,000 would have an LVR of 90%.

The principal and interest type loan which is the most common form of housing loan. The repayments through the term of the loan include both interest and principal.

The amount borrowed is not repaid until the end of the term of the loan. Repayments made are only payments of interest

A loan to purchase a home where the property is used as security in the event of non-payment of the mortgage.

A legal document which expresses the terms and conditions applying to the lending of money secured over real estate.

The person(s) who lends the money.

The person(s) who borrows the money.

The situation where the amount owed on a mortgage exceeds the value of the property.

Insurance is offered to provide peace of mind against life's unexpected problems which invariably occur. Selecting "No insurance" means that you are choosing not to protect your proposed loan repayment in the event of you being unable to work due to an accident, sickness or redundancy.

Mortgagee who assists those unable to borrow money secured on a property from a normal lending source.

Sometimes informally known as a mortgage offer. This document details the terms and conditions upon which the lender is prepared to make a mortgage loan. The applicant must sign and return a copy of the offer indicating their acceptance of the proposed terms.

Two or more persons carrying on a business in common with a view of profit. Every partner is an agent of the firm and thus binds each and every partner. Accordingly each partner is jointly and severally liable for all of the debts not just their percentage share. The firm is not a separate legal entity and therefore cannot enter into any contractual obligations and the each member (partners) is principal and agent of the others

A loan based on a consumer's income, debt and credit history.

The amount of money owed to a lending authority

The seller does not engage an estate agent but acts for himself or herself. The seller deals directly with the buyer.

Sale of property through an estate agent by private negotiation and contract.

The administration and paperwork related to a loan from the time a completed application form is received through to completion of the loan process.

Land with or without improvements thereon.

When a loan is redeemed (paid off) early, either in full or in part, many lenders will charge a fee. This particularly applies to Fixed, Discounted or Capped rate loans or mortgages.

Loan taken out by a borrower to replace another one secured on the same property. Typically taken out by borrowers switching lenders to achieve a better rate.

With a repayment mortgage you pay part interest and part capital repayments to the lender each month and in this way the capital that you borrowed is reduced until the loan is repaid.

Local representatives (Reps) who are available, if required, to pay home visits to help and advise in the completion of loan applications.