First Home buyer Glossary
Capital Gain/ Growth
Capital gain is a rise in the value of an asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain ma...
Contract of sale
This document, typically prepared by a conveyancer or solicitor, details every aspect of a property transaction. It usually includes (and is not limited to): The complete address of the propert...
Conveyancer
A professional conveyancer or conveyancing solicitor helps in the buying and selling of property. They help with the settlement and title transfer process to ensure that all legal obligations are ...
Cooling-off period
The cooling-off period is a set number of days after the sale of property in which you have the opportunity to cancel the transaction. If you take the option to cancel your legal agreement, you ma...
Exchange of contracts
When an offer is accepted or property is bought at auction, the buyer and seller each sign a copy of the contract of sale and keep a copy each, which is why it’s an ‘exchange’ of contracts. This i...
Foreclosure
Foreclosure is the legal process in which a lender takes control of a property, evicts the homeowner and sells the home when they believe the homeowner is unable to repay the full principal and in...
Home Loan Deposit
A home loan deposit is made up of your genuine savings and is your initial contribution to the purchase price of a property. This is paid to the vendor/real estate agent as part of signing a contr...
Key Facts Sheet
Lenders usually will provide a Key Facts Sheet which highlights all the important information about their standard home loans including; the interest rate, total repayment amount and total amount t...
Lenders Mortgage Insurance (LMI)
LMI is an insurance policy you may need to pay for, depending on your Loan to Value Ratio i.e. how much deposit you have saved. This is often required if your home loan deposit is less than 20% of...
Loan to Value Ratio (LVR)
The Loan to Value Ratio (LVR) is a measurement of the amount you need to borrow (loan) as a proportion of the ‘lender-assessed value’ (the lender’s estimate for the property’s value).  Example: ...
Mortgage broker
An individual or company that acts as the intermediary between borrowers and lenders to secure a suitable home loan for lenders. Their job includes negotiating the best deal for a loan on the borro...
Offset account
An offset account is a transaction account linked to your mortgage which ‘offsets’ its balance against the balance of your home loan to reduce your interest payments. In short, money in your offse...
Property inspection report
The building inspection report, or the property inspection report is carried out by a licensed builder, surveyor or an architect and is a written account of the property’s condition. It will inclu...
Property settlement
This is where the ownership of the property is officially transferred from the vendor to the buyer and usually occurs around 6 weeks from the date of the exchange of contracts. On this day, the res...
Redraw
Redraw allows you to access any extra principal repayments you’ve already made on your loan. A redraw facility is a common offering when it comes to home loans. There are also possible tax advantag...
Rental Yield
Rental yield is the amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting it out.  Here’s how to calculate gro...
Stamp Duty
In general, stamp duty is a tax on written documents and certain transactions. These transactions include motor vehicle registrations, insurance policies, leases, mortgages and most pertinent to y...
Strata
Strata title is a form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas. The 'strata' part of the term refers to apartments being on dif...
Unconditional approval
Also known as 'full approval', this occurs after the exchange of contracts once the formal loan application has been approved. 
Get in touch
We're here to help. If you have a specific question, you can contact us via Live Chat or phone Monday-Friday from 8.30am-6.00pm (Sydney time).
To speak with us at a specific time, you can schedule a call with our Head of Customer Service.