Must be a person listed on the "Who is an Acceptable Referee" section of the "Proof of Identity Details" form, which is used to establish proof of identity. Examples of Acceptable Referees are accountants, solicitors, magistrates, teachers of at least 5 years’ standing, vets, doctors, dentists and justices of the peace, who have known you for at least 12 months.

Agreeing to be bound by the terms and conditions of an offer. Once an offer has been accepted, an agreement is formed.

See Special Repayments.

Council, water rates and land tax (where applicable) are adjusted at the date of settlement. They are shared by the buyer and seller in proportion to the amount of time each owns the property in the period for which the rates are charged.

See Sinking Fund.

A person authorised to act on behalf of the person selling, purchasing, letting or managing a property. A typical example is a Real Estate Agent who acts on behalf of a person selling a property.

See Loan Term.

An interest rate expressed as a percentage per annum. The APR on a loan account is applied to the unpaid balance of the account to calculate the interest payable on the loan.

See Comparison Rate.

An estimate of property value as stated by a professional valuer.

Any property, money or goods you own.

A public sale at which property is sold to the highest bidder above a reserve price.

Back to Top

See Contract of Sale.

See Owners’ Corporation.

Money paid by a tenant and held by Rental Tenancy Board to help ensure against losses from non-payment of rent or damage to the property.

Breaking the conditions of a contract.

A short term loan usually taken out to purchase a new property prior to sale of an existing property. (Note: HomePath does not offer finance for this purpose.)

The profit made when a property is sold for more than the original purchase price.

A Federal Government tax on the monetary gain made on the sale of an asset. For further information, please refer to the Australian Taxation Office web site.

A caveat lodged upon a title warns a person buying the property that a third party (generally the person who lodged the caveat) has some right or interest in the property.

This is the document of title to land or real property. It identifies ownership of the land, registered mortgages, and any encumbrances or easements. The Certificate of Title is usually held by the lender as security for a loan.

A certificate issued by an insurer showing that a building is insured.

Where there are no charges for example, mortgages or caveats on title.

See Fixed and Variable Rate Loan.

The fee or payment made to a Real Estate Agent for selling your home.

An area within a Strata Title complex which is used by many people, e.g. stairs, driveways, etc.

Also known as "Old System Title", it is established by tracing an unbroken series of dealings with the property over the life of the property rather than by a register of titles.

Planned communities may be created through registration of a combination of schemes and plans. These consist of "community property lots", which are common areas owned by an association for use by owners, and other lots held by specific owners.

Where the unit holders are actually share-holders in a private company that owns the property. (Note: HomePath does not offer finance where this type of property is offered as security.)

A "Comparison Rate" is an attempt to express some of the costs of a loan into a single interest rate. These "costs" include the nominal interest rate, some ‘up-front’ fees and ongoing charges. It does not include fees and charges based on future events, which may not occur, e.g. redraw fees, progress payments, etc, which are not typical of all loans. The aim of the Comparison Rate is to help consumers make a more informed judgement of the costs of a loan, and in so doing, help them to compare various like loan products and services offered by the various lending institutions. The Uniform Consumer Credit Code (UCCC) has been amended to require a "Comparison Rate" to be quoted on all advertising for home loans where an interest rate is stated.

This is a schedule of the comparison rates based on different loan amounts and terms. To view a comparison rate go to Rates and then View Schedule for the rate you wish to view.

A loan used to fund the building of a new property. (Note: HomePath does not offer finance for this purpose.)

An agreement in writing setting out the terms and conditions the vendor and purchaser enter into for the sale and purchase of a property.

The legal transfer of ownership of property from the vendor’s name to the buyer’s name.

Where applicable, it’s a period after exchange of contracts during which time the contracts may be cancelled.

An annual charge in relation to a property by the local council for the area where the property is located. The charge is to pay for local council services.

A requirement to adhere to certain terms, conditions or restrictions regarding a property.

The arrangement of temporary insurance until a formal policy is issued by the insurance company.

Back to Top

A document recording an agreement, obligation or conveyance of property formally executed as required by law.

Failure to meet a debt payment or other requirement of a contract by a due date.

A deposit is normally paid by the buyer at the time of exchanging contracts or on "fall of the hammer" at auction. It is normally 10% of the purchase price.

Various fees and charges, additional to solicitors’ or conveyancers’ professional costs associated with the sale or purchase of a property. Disbursements include search fees, enquiry fees, survey costs and inspection costs.

The debiting of the loan at settlement or funding.

The right to use land belonging to someone else, e.g. rights of way, sewerage mains, etc.

A charge on a property, i.e. mortgage caveat or easement.

The amount of ownership you have in your property - i.e., the difference between what you owe and what it is currently worth.

Fees charged to cover, or partially cover, a lender’s costs in setting up a loan. HomePath currently does not charge an establishment fee. However, a Deferred Establishment fee is applicable.

The Contract of Sale or Offer of Acceptance (in WA) is prepared in duplicate, usually by the seller’s solicitor or conveyancer. The original is signed by the seller and a copy is forwarded to the buyer for their signature. Once both copies are signed, contracts are exchanged and the buyer and seller each receive a copy signed by the other. Each party is then legally bound to proceed with the purchase of the property, subject to the terms of the Contract of Sale or Offer of Acceptance.

A loan where the interest rate for part of the loan is fixed for a specific period and the interest rate for the rest of the loan is variable.

A loan on which the interest rate is fixed for a specific period.

An interest rate that is fixed for a set period of time. Generally, loan repayments remain fixed for the term of the fixed rate period.

When the home lender provides confirmation that a loan is formally approved and all conditions of the Loan Offer have been satisfied.

The ratio of your own money versus borrowed money in an investment. Positive gearing is when you borrow to invest in an income producing asset and the returns (income) from that asset exceed the cost of borrowing. Negative gearing is when you borrow to invest in an income producing asset and the cost of borrowing exceeds the returns (income) from that asset.

Income before tax.

Back to Top

A small amount paid to the seller’s agent to indicate your interest in the purchase of the seller’s property. It does not prevent the property from being sold to other interested buyers.

Provides for a lump sum or periodical payment if a borrower becomes incapacitated and is unable to continue working.

A charge for money lent.

Monthly payments are equal to the interest and fees charged to a loan account and there is no reduction to the principal loan amount.

The purchase of an asset for example, real estate or shares in order to produce income, or to produce capital gain on resale/maturity.

The holding of property by two or more people in equal shares where, if one dies, his/her share goes to the survivor/s. Most couples buy property under joint tenancy.

An area where land movement is possible. Special council certificates can tell you whether a property is in a land subsidence area.

See Land Subsidence Area.

A State Government tax payable by owners, based on the value of the land.

A document granting possession of a property for a given period without conferring ownership. The Lease Agreement specifies the terms and conditions of occupancy by the tenant.

This insurance protects the lender should the borrower default and the property is sold for less than the outstanding amount on the loan. The borrower remains liable to the mortgage insurer for the amount it has to pay the lender.

The person who leases the property in terms of the Lease Agreement.

The person who owns the property and allows another person occupancy.

Outstanding debts or obligations.

The amount of the loan expressed as a percentage of the property’s value.

An offer of finance which sets out the full terms and conditions of the credit contract, including any special conditions you must satisfy before a lender will advance you the credit.

A letter a home lender can provide, which based on information you give them, tells you how much they would be prepared to lend you, and some of the terms and conditions that would apply. It is generally not an absolute guarantee of loan approval.

The fee charged by your home lender to administer the loan, normally charged monthly. Currently, HomePath does not charge Loan Service Fees.

The period of time over which a loan is to be repaid.

Back to Top

An estimate of the highest price a buyer would pay for a property.

The date by which a debt or investment must be repaid/renegotiated in full.

A mortgage is a contract between the mortgagor (being the person who owns the real property) and the mortgagee (being the person or lender to whom the property is mortgaged) which secures the repayment of a loan.

Charged by the home lender when they prepare a discharge of the mortgage they hold over your property.

A State or Territory Government fee charged when a mortgage is established or discharged over your property.

See Stamp Duty on Mortgage.

The person or lender to whom a property is mortgaged, to secure the repayment of a loan.

The person who mortgages an asset to secure a loan.

Negative gearing on a rental property occurs when the annual interest payable on the loan used to acquire the property plus other expenses incurred in maintaining the property exceed the annual rental income that the property generates.

Gross income less income tax.

Buying a property, usually an apartment, from seeing plans, before it is even built.

See Contract for Sale.

A written offer of a specified price for a particular property. The offer may be conditional or unconditional.

See Common Law Title.

A legal document giving a person the right to buy. The document outlines the required price and applicable period, with a fee being applicable. If the property is bought, the fee is deducted from the purchase price; if the purchase does not proceed, the fee is non-refundable.

The owners of a block of units. The Executive Committee (which is elected by the members of the Owners’ Corporation) is responsible for the administration and upkeep of the common property.

A property is "passed in" at auction if the highest bid is less than the vendor’s reserve price. The person making the highest bid has the first option to negotiate further with the vendor.

Allows you to change an existing security property with a new security property without repaying the loan.

The amount of money lent by the lender.

The seller (vendor) does not engage a Real Estate Agent, but acts for him/herself, thereby avoiding a Real Estate Agent’s commission.

Sale of property by private negotiation and contract, with or without a Real Estate Agent.

See Certificate of Title.

See Valuation.

See Valuer.

The price the seller and the buyer agree on exchange of Contracts of Sale.

Back to Top

See Repayment Redraw.

To replace or extend an existing loan with a new loan from the same or another financial institution.

Principal and interest repayments require you to make payment of both the interest and the amount borrowed.

Repayment Redraw allows you to access repayments which were previously made, in addition to the required regular repayments, on your loan.

The minimum price to be accepted by the vendor at auction.

A document that sets out the details of a property to be leased.

The process of investigating title to land to ascertain if the vendor has the right to transfer ownership.

A loan which is secured by a mortgage over your property.

The property provided as security for a loan. That is, the mortgaged property.

See Purchase Price.

This refers to the day to day management of your loan, including repaying your loan. For example, changing your repayments or requesting a duplicate loan statement.

The transaction that completes the sale. Monies are handed over in exchange for relevant documents. The purchaser can then take legal ownership of the property.

A special levy, held in trust and administered by a Body Corporate, to cover any major repairs or maintenance that may have to be carried out on the building or grounds the Body Corporate administers.

Levies determined by a Body Corporate in addition to the Annual Levy.

Any money paid into the loan in addition to the required minimum repayments. The amount of special repayments may be available for redraw, depending on your loan option.

A State or Territory Government tax (based on where the property is situated) payable by the purchaser of real estate and assessed on the purchase price of the property. Depending on the individual State legislation, the duty is payable to the Office of State Revenue anywhere from the day of settlement to three months after the date of exchange of contracts. Some first home buyers may be eligible for a concession on the stamp duty.

A State or Territory Government tax (based on where the property is situated) payable by the borrower and assessed on the amount secured by the mortgage. The higher the amount secured by the mortgage the greater the Stamp Duty on Mortgage that is payable.

See Variable Rate Loan.

The fees payable to the Body Corporate for up keep and maintenance of common property.

A certificate that will disclose information about the management committee of a Body Corporate, including insurances, cost of levies and strata policies.

A form of title commonly used for units (i.e. apartments, flats). Strata title relates to the subdivision of land where parts of the land and building are divided into lots. It gives you membership of the Owners’ Corporation, and the ownership of a defined part of the whole building. Strata titles are registered under the Torrens Title system.

Shows boundaries of the land and location of the dwelling to ensure that there are no encroachments onto, or from, adjoining properties.

The right to occupy land or buildings as provided by the terms of a lease or other agreement.

This is the holding of property by two or more people in equal or unequal shares. If one person dies, his/her share passes to the

See Certificate of Title.

See Certificate of Title.

The process of investigating a title of a property, to ascertain if the vendor has the right to transfer ownership or if there are any prior encumbrances on the title.

Torrens Title is the name given to the system of registration of ownership and dealing with property. Under this system title to a property is established by a statutory title issued by the Registrar General. It is the most common form of residential property ownership.

A document registered in the Land Titles Office which records the transfer of ownership from the vendor to the buyer.

See Stamp Duty on Contract.

Back to Top

Describes a property free of mortgages, caveats or charges.

A report detailing a property’s value.

A qualified person who determines the value of a property based on his/her knowledge of the area, property type and historical sales.

A loan where the interest rate can increase or decrease at any time depending on market conditions.

A person who offers a property for sale.

The yearly water usage charge paid to the local water supply authority where the property is located (usually paid in quarterly instalments).

Statutory description of the allowable uses of land as set out by local councils or planning authorities.

Back to Top