Capital gain
The monetary gain obtained when you sell your property for more than you paid for it.
Completion date
The date on which the contract is completed and the balance of the purchase monies is paid to the seller.  The purchaser receives the keys to their new property.
Cooling Off Period
A period of five days under which a purchaser who has entered a Contract for Sale can rescind the contract.  The cooling off period may be extended or shortened by agreement between the seller and the purchaser.  The cooling off period can also be waived.
Daily interest
Interest calculated on a daily basis. Therefore, it varies according to the outstanding balance.
Deposit
Upon exchange of contract/s to purchase a property, the purchaser is required to pay a deposit. This is usually a payment of 10% of the purchase price .The deposit is often held by the seller’s real estate agent or solicitor, in their trust account until settlement. A deposit can be in the form of a cash payment or a deposit bond.
Deposit bonds
Guarantees that the purchaser of a property will pay the full deposit by a due date. Institutions providing deposit bonds act as a guarantor that payment will be made. They are often used when cash isn’t readily available at short notice.
Equity
The difference between the property’s value and what is owed to the lender.
Equity loan
A loan obtained through equity is one secured by the proportion of the value of the property you own.
Exchange of Contracts
The point at which a contract is entered by the seller and the purchaser and a deposit is paid by the purchaser.  
First Home Owner Grant (FHOG)
A grant paid by the government to eligible first homebuyers to put towards their home purchase.
Guarantor
A party who agrees to be responsible for the payment of another party’s debts. They are ultimately responsible for the borrower’s debt.
Holding deposit
A deposit based on the goodwill of the buyer to go ahead with the purchase.
Joint tenants
Equal holding of property between two or more persons. If one party dies, their share passes to the survivors. A typical arrangement for a married couple.
Lenders mortgage insurance (LMI)
A form of insurance taken out by the lender to safeguard against loss in the event of default or loss at the time of sale of the property. The borrower pays a once-only premium. The insurance covers the lender, not the borrower.
Loan to valuation ratio (LVR)
The ratio of the amount lent to the valuation of the property.
Mortgage
A form of security for a loan usually taken over real estate. The lender (the mortgagee) has the right to take the real estate if the mortgagor fails to repay the loan.
Mortgagor
The person borrowing the money in terms of the mortgage.
Mortgagee
The lender of the funds.
Principal
The capital sum borrowed and owing, on which interest is paid.
Principal and interest loan
A loan in which both principal and interest are paid during the loan term.
Refinancing
To replace or extend an existing loan with funds from the same lender or another.
Security
An asset that a borrower offers to a lender, of which the lender can take possession and sell if the loan is not repaid. Legal arrangements are put in place that register the lender’s claim over the asset until the loan is repaid. Usually property such as real estate is offered as security.
Settlement
The time at which the Title Deeds to the property are handed to the purchaser in exchange for the purchase monies.   
Standard variable loan
A loan product packed with comprehensive features such as an extra repayment option. The interest rate will fluctuate up and down depending on the market, and repayments on these loans can be either interest only or principal and interest. Most owner occupied loans are variable interest rate loans.
S66W Certificate
A Certificate issued in accordance with Section 66W of the Conveyancing Act 1919 which is given by a purchaser's conveyancer under instruction from the purchaser, to the seller waiving a purchaser's cooling off rights under a Contract. 
Tenants in common
Where more than one person owns separate, defined portions of a property. If one person dies, the relevant portion passes through the deceased estate rather than to the other property owner(s) as it does with joint tenancy. Each owner can hold a specific share of ownership and has the right to dispose of their interest.
Term
The length of a loan or a specific portion within the loan.
Unencumbered
A property free of liabilities or restrictions.
Valuation
A report required by the lender, detailing a professional opinion of property value.
Vendor
The person/company selling the property.

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