account balance – The amount of money you have in your account.
annual fee – The amount charged by the lender each year to cover the administration costs of the loan.
application – A standardised form used to apply for a loan and to record relevant information about the prospective borrower and the proposed property.
appraisal – A written analysis of the estimated value of a property.
appreciation – An increase in the value of property due to changes in the market conditions, ie – inflation.
asset – Anything of monetary value owned by an individual.
bad debt – A debt that is not collectible and is therefore worthless to the creditor.
bankrupt – The condition of being unable to pay debts, with liabilities greater than assets.
business loan – A loan granted for the use of a business.
budget – A detailed plan of income and expenses estimated over a specific period of time, helping to manage costs and profits.
cash advance – An instant loan obtained from a lending institute.
collateral – Property pledged as security for a debt.
commercial loan – A loan used to finance a company or its working capital needs.
construction loan – A loan used for financing the cost of construction.
contract – An oral or written binding agreement between two or more parties.
conveyancing – A legal process to transfer ownership of property from the seller to the buyer.
credit – An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
credit card – A card that allows you to buy goods, services and obtain cash advances on credit.
credit report – A report of a person’s credit history from a credit bureau used by a lender to determine a loan applicant’s worthiness.
debit – When money is taken out of your account for something you’ve bought or to repay money you owe.
debt – An obligation to pay an amount owed for funds borrowed.
debt consolidation – The replacement of multiple loans with a single loan, often at a lower periodic payment.
default – Failure to make a required debt payment when it is due.
deposit – Money paid in good faith to assure the performance of a contract.
depreciation – A decline in the value of real or personal property.
direct debit – An amount of money paid regularly and of various amounts, to an individual or a company from your account with your consent.
EFTPOS – (Electronic Funds Transfer at Point of Sale) A way of buying goods and services using a fast cash savings, cheque or credit card.
equity – The difference between the market value of your home and your outstanding mortgage balance.
finance – The commercial activity of providing funds and capital.
first home owner grant scheme (FHOG) One off $7000 payment to eligible first home buyers.
fixed interest rate – An interest rate which is fixed for the term of the loan.
grace period – The period of time in which you are not required to make payments on a debt.
gross income – Your income before any tax or other deductions have been made.
home loan – A residential mortgage loan secured by a primary residence.
inflation – An increase in the amount of money or credit available relative to the amount of goods or services available, causing a rise in the price level of goods and services.
instalment – A regularly scheduled periodic payment that a borrower agrees to make to a lender.
insurance – A form of contract that provides compensation for specific losses in exchange for a periodic payment.
interest rate – The cost of borrowing money expressed as a percentage of the amount borrowed.
investment – The money paid to purchase a capital asset or a fixed asset.
investment property – A property that is not occupied by the owner, usually purchased to generate profit.
jargon – The specialized language of a particular profession, used predominantly in contracts.
lender – A person or company that supply funds.
liability – The debts or financial obligations of a person or company.
liquidate – When a company ends from being unable to pay off its debts.
loan – Borrowed money that is usually repaid with interest.
loan term – A lender’s agreement to make a loan on particular terms, including interest rate, fees and charges.
low doc loan – A loan requiring a lower level of verification documents.
mortgage – A legal document that pledges a property to the lender as security for payment of a debit.
no doc loan – A loan requiring no documentation of income.
occupancy rate – Percentage of currently rented units in a building, neighbourhood, complex, or city.
owner finance – A property purchase transaction where the seller provides the financing.
personal loan – Money borrowed to meet personal needs.
profit – The positive gain from an investment or business operation after expenses.
property – That which is legally owned by an individual or property.
purchase agreement – A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
quick cash – Liquid assets including cash on hand and assets readily convertible to cash.
rate – The annual rate of interest on a loan, expressed as a percentage of 100.
refinance – To repay one or more existing mortgage loans by getting a new loan.
renovation loan – A loan used to make improvements to an existing property.
repayment plan – An agreement between a lender and a borrower, made to help the borrower repay instalments.
risk – The likelihood of loss or less than expected returns.
self employed – An individual who operates a business as a sole proprietor.
second mortgage – A loan taken after the first mortgage and is secured against the same assets as the first.
security – Property that is pledged as collateral for a debt.
secured loan – A loan that is backed by collateral.
settlement – The time when loan and mortgage documents are formally signed and the loan transaction is completed.
short term loan – A loan scheduled to be repaid in less than a year.
sole ownership – Ownership of property by a single person or entity.
term – The period of time during which loan payments are made. At the end of the loan term, the loan must be paid.
title – A legal, written instrument detailing an individual’s lawful possession of a property.
trade equity – Equity from a buyer giving existing property as trade for all.
underwriting – The process of verifying data and approving a loan.
unsecured loan – A loan that is obtained without collateral.
variable rate – An interest rate that changes with movement in the market.
warranty – A promise contained in a contract.
write off – When a loan is uncollectible.
yield – A measurement of the rate of earnings from an investment.
zone – An area reserved for specific limited use, often subject to restrictions or conditions
We’ve helped over 16,000 Aussies live a better life through a variety of loans designed to make money management easier. ALC do more than the banks because we look at your unique situation, not your credit history.
For over 30 years, the Australian Lending Centre has provided access to a wide range of financial solutions including Personal Loans, Debt Consolidation and Mortgage Refinance.
Applying with us has no impact on your credit score, so you could gain approval even if you’ve been rejected elsewhere.
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