Glossary T-Z

Term
The duration of a loan. For a home loan, a term of 25 or 30 years is fairly standard. Loan terms will also often be referred to as a number of months i.e. a 30 year loan can be expressed as 360 months.

Title Search
This is a search of the State Government’s Titles database that is undertaken by the legal representative of a borrower purchasing a property. The search will provide details of who owns the property, as well as who has an interest in the property (i.e. any lender who holds a mortgage over the property).

Title Transfer Fee
This is a State fee charged when you purchase a property, and covers the transfer of the title deed for that property.

Uncommitted Monthly Income
The net income that is available once all monthly expenses are deducted. Monthly expenses may include home loan repayments, personal loan repayments, credit card repayments and any other payments or general living expenses. Most lenders will require that you have a certain level of uncommitted monthly income before they offer you a loan.

Upfront Costs
The various fees and charges you will need to pay when your loan settles, including stamp duty, legal fees, mortgage registration fees etc.

Valuation
A report that outlines the value of a property and how the figure was reached. When purchasing a property, the lender will require a valuation from a certified valuer before approving the loan. The borrower is responsible for paying the valuation fee, even if the loan does not proceed.

Variable Rate Loan
A loan where the interest rate varies with fluctuations in the mortgage market and changes in official interest rates by the Reserve Bank of Australia. As the interest rate changes, so do your minimum repayment obligations.