For lending purposes only, appraised value is the estimate of a property's value offered as security for a home loan.
Appreciation is when the value of a property increases for reasons such as demand or inflation over time.
Body corporate is a self elected council of owners within a strata building that owns property collectively and manages the building and common areas.
Short-term bridging finance covers the gap between the purchase of a new property and sale of an existing one.
Capital gain is the profit from selling an asset at a higher market price than its purchase price.
Caveat emptor - Latin for 'buyer beware', meaning the buyer has the responsibility to fully examine the goods before a purchase.
Certificate of Title refers to the title deed of a property that provides documentary evidence of the right of ownership.
Common property is part of the strata property for the use of all tenants, such as stairwells and driveways.
A comparison rate is an interest rate calculation that takes into account the advertised interest rate, upfront fees and fees over a 25-year period.
Contract of sale is a legal contract in writing, detailing the terms and conditions of the purchase or sale of a property between the seller and buyer.
Cooling off period refers to the time a buyer or seller has to opt out of a contract of sale. This does not apply for auctions.
Conveyancing is the legal transfer of property ownership from the seller to the buyer.
A deposit bond guarantee can be used instead of providing your own funds for the deposit while waiting for property settlement.
Drawdown refers to the accessing of loan funds provided by the lender.
Exchange of Contracts is the signing and exchange by the buyer and seller. This usually involves the need for the buyer to pay the deposit to the seller or selling agent.
Equity is part of an asset, such as a house, that you own over and above the amount borrowed from the lender which has the mortgage over the property.
Fixtures and fittings are part of the property, such as baths or dishwashers, that can't be removed and are fixed in place.
Freehold refers to absolute ownership of the property by the proprietor of the land.
A guarantor is someone who accepts formal responsibility to the bank/lender for something such as paying another person's debt in case of default. A guarantor may also offer extra security.
Land tax is a state government tax based on the land value that's payable by property owners. This can vary from state to state.
Rate Lock is a feature on all HSBC Fixed Rate Home Loans that can guarantee your fixed interest rate between the time we receive your Rate Lock request and the time of settlement. It protects you against any rate rises during this period for a fee.
Reserve price is the minimum price a vendor will sell the property for at auction.
Settlement is money paid in full less the pre-paid deposit in exchange for title documents, keys and the right to take possession of a property.
Stamp duty refers to state government tax on certain transactions and documents such as a Contract of Sale and Mortgage. Stamp duty can vary from state to state.
Term is the length of time of a home loan or specific portion of time, such as the fixed rate period, within that home loan.
Title deeds are legal documents signifying ownership of real property.
The Land Titles Office registers a title search for the certificate of title to enable you to establish who owns the property and whether there are any registered encumbrances, such as a mortgage or caveat.
The vendor is the party offering a property for sale.
