Capital
the current value of your long-term assets - house, property or business
Capital Gain
the monetary gain obtained when you sell an asset for more than you paid for it.
Capital Gains Tax
a Federal tax on the monetary gain made on the sale of an asset bought and sold after September 1985.
Capitalisation
when interest payable is accrued and added to the total debt payable.
Capped Loan
a loan where the interest rate is not allowed to exceed a set level for a period of time but, unlike fixed rate loans, is allowed to drop.
Caveat
the Latin for 'beware'. Usually it is in the form of a contract clauses that stipulates a particular requirement.
Certificate of Title
this document details the land dimensions and ownership details, and whether there are any encumbrances on it.
Chattels
chattels are personal property. There are two types. Real chattels are buildings and fixtures. Personal chattels are clothes and furniture.
Combinations Loans
where various loans come under the same banner to form one loan. May have a portion variable, fixed or even a portion as a line of credit. Also known as split loans.
Common Property
an area used by many, not an individual. Owned by the tenants in common.
Company Title
a property title that applies when owners of units in a block form a company.
Comparison Rate
used to compare the actual rate loan, taking into account nominal interest rate per annum, the compounding frequency and upfront and ongoing fees, as outlined in the Consumer Credit Code.
Compound Interest
interest that is paid on both the accumulated interest as well as on the original principal.
Construction Loans
a loan specifically granted for the purpose of funding the building of a new dwelling. You are generally able to draw down money as required, so you can pay as necessary.
Consumer Credit Code
an Act of Parliament governing the relationship between borrowers and lenders
Contract of Sale
a written agreement outlining the terms and conditions for the purchase or sale of property.
Contract
a legally enforceable agreement between individuals or entities. In real estate, contracts are exchanged when the deposit is paid.
Conveyance
the legal process for the transferal of ownership of real estate.
Covenant
terms and conditions that specify the usage of a block of land or the buildings on it.
Cover Note
a note of temporary property insurance before the implementation of a formal policy.
CRAA
(Credit Reference Association of Australian) the body which holds credit details on all of us!
Credit
borrowed money to be paid back under an arrangement with a lender. Also, a sum of money paid into an account.
Credit Limit
maximum amount the borrower can use at any one time.
Creditor
a party to whom money is owed.