Mortgage broking terms (1)

Question 1

Amortisation

Answer 1

Amortisation is where the value of something decreases overtime such as the outstanding balance of a loan that reduces over time according to scheduled repayments.

Question 2

Arrears

Answer 2

Payments that are overdue

Question 3

Australian business number

Answer 3

identifier for all businesses operating in Australia

Question 4

Balance sheet

Answer 4

Also known as financial statement of position!

it is a financial statement which outlines assets, liabilities and owners equity position of a business.

Question 5

Bridging finance

Answer 5

a bridging loan is a short term loan that finances the purchase of a new property while you are selling your existing property.

Question 6

Capital gains tax

Answer 6

A federal tax charged on the profits made on a sale of an asset such as real estate property.

Question 7

Interest (Caveat)

Answer 7

A Interest is a legal document that is registered on a Certificate of Title outlining the rights and restrictions that apply to a property.

Question 8

Caveat

Answer 8

An interest lodged on a certificate of title, usually in relation to a monetary amount owed by the owner of the property.

Question 9

Certificate of Title

Answer 9

A certificate of title is a legal document which shows ownership of a property as well as land dimensions, encumbrances and caveats.

Question 10

Conveyancing

Answer 10

Conveyancing is transferring property ownership from one party to another.