Home Loan Jargon Buster
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For first home buyers, the language and jargon used in purchasing a property can be very confusing. Here’s an A-Z glossary of commonly used words and phrases, with easy-to-understand definitions for each one.
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Most Frequently Searched Terms- Application fee
Also called an establishment fee, it’s paid to set up your loan and usually includes legal fees and valuation charges. Go here to learn more about - Arrears
To be behind in a repayment. Learn more about - Body corporate
An administrative body made up of all the owners within a group of units or apartments of a strata building. The owners elect a committee which handles administration and upkeep of the areas shared by the owners. - Building insurance
Insurance which covers the cost of rebuilding or repairing a property following structural damage, for example by flood, fire, storm and subsidence. - Certificate of title
The certificate detailing the ownership and land dimensions of a property. - Company title
A property title that applies when owners of units in an apartment block form a company. Each has shares in the company that owns the land and buildings. The owner of the shares is entitled to exclusive occupation of a flat. However, if you want to alter occupancy in any way, you must have the company’s approval to do so. - Contents insurance
A policy insuring household contents against theft and damage. - Off The Plan
A legal document that details the conditions relating to the sale/purchase of the property. This document is legally binding when signed by both the vendor and buyer. - Contract of sale
A legal document that details the conditions relating to the sale/purchase of the property. This document is legally binding when signed by both the vendor and buyer. - Conveyancer
A person qualified and licensed to handle all documentation for the sale and or purchase of a property
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Own Your First Home team of experts is available to guide you and answer any questions you might have regarding the process of buying your first home.
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