Financial Dictionary - R

Article Index

Redraw Facility

a loan facility whereby you can make additional repayments on your loan and then access these extras funds when necessary. They will often have limitations such as a minimum redraw amount and a fee for each withdrawal.

Refinancing

to replace or extend an existing loan with funds from the same institution or another.

Rental Guarantee

a promise by the developer guaranteeing a certain level of return on an investment property. Usually stated as a percentage of the purchase price, it generally relates to investment properties purchased off the plan.

Reserve Price

a minimum price acceptable to a seller at auction.

Residential Investment Loan

a loan granted to purchase a property intended for investment purpose (for example, to be rented out) as opposed to owner-occupied purposes.

Rise and Fall Clause

a building contract clause that allows the final pricing to move up or down according to the functions of material prices or wages.