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YOUR LOAN | | | NON-CONFORMING LOANS | | | HOME LOANS | | | PRODUCTS |
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 Jargon Buster
The process of investigating or examining title to land to ascertain if the seller has the right to transfer ownership. A title search reveals the names of the owners and the other precise details of the property such as the existence of any restrictive covenant, mortgage or caveat on the title. Mortgage ranking behind a first mortgage ie a second loan. Lender who has registered a charge or mortgage directly behind that of the first mortgages. A loan that is secured using your property. A loan to be used for any purpose. The equity in the property is put up as security against not paying the loan back. When a loan is taken out it is ‘secured‘ on a property, the borrower agrees to the lender creating a charge over the property; the deed makes reference to the rights and obligations of both parties as detailed in the Legal Charge, Standard Security or Loan Agreement. Thus the property is known as the ‘security‘. When taking a secured loan or mortgage, the security address is the address of the property which is being offered as collateral for the loan. Where property is offered as security in this way, lenders are generally prepared to offer more flexible terms and lower interest rates. Lenders that operate this type of scheme allow the applicant to confirm how much they earn by "Self-certifying" their income. Schemes are available to both employed and self employed applicants. Typically for the employed, the schemes are designed to help those applicants with incomes that incorporate a large element of bonus or where they derive income from a number of jobs. Where as for self employed there is no need for full 3 years audited accounts to be provided. The sum quoted in order for the loan to be repaid during the contracted term. An individual carrying on a business A tax paid on the loan amount. Is payable on refinancing, however most states provide a refund and only charge on the upstamped amount. A tax paid on the purchase of properties. The credit-worthiness or otherwise of a potential borrower. Strata Title is the common method of unit (or villa or townhouse) ownership. The relevant strata legislation makes possible the subdivision of the airspace above the surface of the land, and the issue of a Certificate of Title to part or parts of a building. This enables the purchaser to buy the actual space enclosed by the unit/villa/townhouse and then sell, lease, mortgage or otherwise deal with the lot as any other owner of property A detailed survey of the structure of a building carried out by a Structural Engineer or Chartered Building Surveyor. Surveyors are liable for negligence. Mortgage granted to a person who is unable to borrow money secured on a property from a normal lending source. The reasons the applicant may not be granted a mortgage by a high street lender, could fall into one of three categories: This is the holding of property by two or more persons in equal or unequal shares. If one person dies, his/her share passes to the person named in his/her will. Period of a loan expressed in months or years. Set of documents relevant to present and past ownership of a property. Details names of owners and details of institutions that have registered a charge against the property. Held by the first mortgagee whilst their charge remains in existence Torrens Title is the name given to the Government system of recording ownership of land. It is by far the most common land title, and the cheapest to buy and sell. Once you are registered on the title, you are the guaranteed owner, except in the case of fraud and trusts. A document registered in the Land and Property Information NSW acknowledging the change of ownership of a property, to be noted on the Certificate of Title. The process by which the ability of a prospective borrower to repay a loan is assessed (also the name of the department that undertakes this work). The process takes into account various factors including employment history, financial status, previous credit history and current earnings. Describes a property free of mortgages, covenants, restrictions, etc. A loan to be used for any purpose. The credit rating or financial position of the applicant is such that no security for the loan is required. A brief inspection of a property for mortgage purposes. Whilst it is for the lenders use it is often paid for by the loan applicant. A rate of interest which may vary up or down during the lifetime of a loan. The circumstances causing any change are outlined in the loan conditions. Statutory description of the allowable uses of land as set out by local councils or planning authorities.
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