Terminology can be hard to understand, here's some of it.
AAPR - Average Annualised Percentage Rate. Sometimes referred to as the Compulsory Comparison Rate, this figure takes into account the other costs associated with the loan etc, and expresses them as an average interest rate, to create a level field with which to compare like loan product interest rates.
Acceptance - Agree to the terms of an offer or contract.
Additional repayment - Extra funds paid into the loan in addition to the minimum monthly payments.
Agent - Real Estate Agent
Amortisation period - The period of time a loan is calculated over (and repaid).
Application fee - The fee charged by a lender to cover or partially cover the lender's costs of setting up or establishing the loan.
Arrears - An overdue account yet to be paid.
Assets - Money, property or goods owned.
Asset Lender - Lending institution that lends finance based on the value of the asset, which will be held as security.
Assignment - Legal transference of a right or a title to a property, to another party.
Banker's Lien - The right of a Bank to retain a customer's securities until a liability to the Bank is discharged. (See also 'General Lien').
Bankruptcy - The legal financial state and individual is in, when unable to meet debts (for Companies it's known as being 'wound up'). A debtor may be declared bankrupt by the Federal Court at either the debtors or the creditors instigation, and the debtors estate will be placed in the hands of an official receiver who will distribute the estate in accordance to the provisions of the Bankruptcy Act.
BayCorp Ltd - The company which records and holds credit information on everyone, such as loan applications, credit defaults, and so on. Was originally known as CRAA, and may often be referred to as the 'CRAA Check'.
Borrower - A person, persons, or entity borrowing money to purchase, payoff, or refinance a product or effect.
Buyer's Agent - Person to act on behalf of the buyer to find and negotiate on properties the buyer wishes to buy.
Capital - The current value of your assets, including car, property, business, or money etc.
Capital Gain - The financial gain you get when you sell something for more than you bought it. Maybe subject to the capital gains tax, which is paid on the gained amount.
Caveat - A notice of warning given to a public authority, e.g. Titles Office, claiming entitlement to an interest in certain land. The caveat is registered and remains on the books as a warning to anyone who contemplates dealing with the property. It therefore prevents any action being taken without the previous notice of the person entering the caveat (the caveator).
Charge (over property) - The term used to describe any right established over a borrower's property to secure a debt or performance of an obligation.
Collateral Security - Additional or supporting security given in addition to the principal security.
Comparison Rates Schedule - See CRS
Compulsory Comparison Rate - Or CCR, is the figure expressed an interest rate, that takes into account some of the extra costs of a loan product. The formula used to calculate the CCR is regulated by the Uniform Consumer Credit Code and all Australian lenders are required to use the same formula.
Consumer Credit Code - Legislation designed to protect the rights of the individual (personal consumer) by ensuring banks and other financial institutions all adhere to the same rules when providing personal, domestic or household credit. It should provide borrowers with complete and honest information. Also known as the Uniform Consumer Credit Code or UCCC.
Contract of Sale - A written agreement outlining the terms and conditions for the purchase or sale of property.
Conveyancing - The legal process for the transferral of ownership of real estate.
COSL - Credit Ombudsman Service Limited. Formerly known as MIOS (Mortgage Industry Ombudsman Service).
CRAA - (Credit Reference Association of Australia) the company which used to record and hold credit information on everyone. Changed it's name to 'Credit Advantage Limited' and more recently BayCorp Ltd.
Credit Advantage Limited - See CRAA.
CRS - Comparison Rate Schedule. The schedule displayed by a lender that give the annual percentage rate and the respective Comparison Rate, for the lender's loan products for specific amounts over specific terms.
Daily Interest - Interest calculated on a daily basis - varies according to daily account balance.
Debtor - Someone who owes money to another and can be compelled to perform an obligation.
Deed - A document in writing, which is signed, sealed and delivered by the parties thereto, to prove and testify the agreement of the parties whose deed it is, to the things contained in the deed.
Depreciation - The accounting practice where the cost of a fixed asset of a business is spread over the life of the asset. Depreciation is a non-cash expense which allows the money to be retained by the business, thus technically allowing the business the capacity to replace the asset over time.
