Australian Property Investment & Mortgage Glossary

Australian Property Investment & Mortgage Glossary

Navigating the world of property investment, lending, and finance in Australia can feel overwhelming, especially with all the industry jargon, acronyms, and technical terms thrown around by brokers, developers, and lenders.

At Aus Investment Properties, we believe in empowering investors with clarity, not confusion.

That’s why we’ve created this comprehensive glossary of 300+ Australian property and mortgage broking terms — designed to help first-time buyers, seasoned investors, and SMSF clients decode the language of real estate, lending, and wealth-building.

Whether you're exploring co-living strategies, applying for SMSF finance, or researching dual occupancy builds, this glossary gives you a plain-English explanation of the most important terms in the industry — all in one place.

🔍 Use it as your quick-reference guide, training tool, or educational resource as you build your property portfolio.

ACCOUNT CONDUCT – How a borrower's bank accounts are managed; used in lending assessment.

ACCREDITATION – Approval by a lender for a broker to offer their loan products.

ACCRUED INTEREST – Interest that has accumulated but not yet been paid.

ADJUSTMENTS – Settlement calculations for rates, water, rent, etc.

AFFORDABILITY – Measure of a buyer’s ability to purchase property.

ALT DOC LOAN – Loan for self-employed borrowers using alternative income verification.

AMORTISATION – Gradual repayment of the principal loan amount over time.

APPLICATION FEE – Fee charged to apply for a home loan.

ARREARS – Missed or overdue loan repayments.

ASSESSMENT RATE – Interest rate used by lenders to stress test loan applications.

ASSET – Item of value owned, such as property or shares.

AUCTION – Public sale where a property is sold to the highest bidder.

AUSTRAC – Australian Transaction Reports and Analysis Centre – Monitors financial transactions.

AUTOMATED VALUATION MODEL (AVM) – Computer-generated property valuation tool.

B&P – Building and Pest Inspection – A check for structural and pest issues.

BA – Building Approval – Official permission to begin building work.

BANK GUARANTEE – Bank’s promise to cover a buyer’s obligation to a seller.

BC – Body Corporate – Entity managing common property in strata schemes.

BENCHMARK RATE – Reference rate used to set interest rates.

BORROWING CAPACITY – Maximum amount a person can borrow based on income and debt.

BREAK COSTS – Fees for ending a fixed loan early.

BRIDGING LOAN – Short-term finance to buy before selling your existing home.

BROKER – Person who arranges a loan between borrower and lender.

BUY-AND-HOLD STRATEGY – Long-term investment approach based on capital growth.

BUYER’S AGENT – Professional who represents a property buyer.

CAPITAL CITY MARKET – Property markets in major Australian cities like Sydney or Melbourne.

CAPITAL GAINS TAX (CGT) – Tax on profit when selling an investment asset.

CAPITAL GROWTH – Increase in property value over time.

CASH FLOW – Income received minus expenses paid.

CASH RATE – RBA-set interest rate influencing mortgage rates.

CAVEAT – A legal notice preventing transactions on a property.

CERTIFICATE OF CURRENCY – Proof of current insurance for a property.

CERTIFICATE OF TITLE – Document showing property ownership.

CLEAR TITLE – Ownership of property without any encumbrances or liens.

CLOSING COSTS – Costs paid at settlement (legal, stamp duty, etc.).

CO-BORROWER – Second person equally responsible for the mortgage.

COMPARISON RATE – Interest rate including fees and charges.

COMPLETION DATE – Date when building or property construction is finished.

COMPOUND INTEREST – Interest calculated on both principal and accumulated interest.

CONDITIONAL APPROVAL – Preliminary approval subject to final documents.

CONSTRUCTION LOAN – A loan released in stages to fund building.

CONSUMER CREDIT CODE – Law governing credit provided to individuals.

CONTRACT OF SALE – Agreement outlining terms of a property transaction.

CONVEYANCER – Licensed professional handling legal property transfer.

CO-OWNERSHIP – Shared ownership of a property by two or more parties.

COST BASE – Purchase cost of an asset for CGT purposes.

CREDIT ASSESSMENT – Review of a borrower's financial situation.

CREDIT FILE – Your official credit report and history.

CREDIT LIMIT – Maximum amount available on a line of credit.

CREDIT PROVIDER – Entity offering credit (e.g. banks, lenders).

CREDIT SCORE – A rating based on your credit file that impacts borrowing.

CROSS-COLLATERALISATION – Using multiple properties as loan security.

CURRENT MARKET VALUE – Value of a property in present-day conditions.

DEBT CONSOLIDATION – Combining multiple debts into one repayment.

DEBT-TO-INCOME RATIO (DTI) – Total debt divided by gross income.

DEED OF GUARANTEE – Document where guarantor agrees to repay loan if borrower defaults.

DEFAULT NOTICE – Notification that a loan repayment has been missed.

DEFERRED SETTLEMENT – Settlement date scheduled for a later time.

DEPOSIT – Initial payment made to secure a property purchase.

DEPOSIT BOND – A guarantee used in place of a cash deposit.

DEPRECIATION – Tax-deductible decrease in asset value over time.

DISBURSEMENTS – Out-of-pocket costs paid by a conveyancer.

DISCHARGE OF MORTGAGE – Removing a mortgage from the property title.

DISPLAY HOME – Model house shown to market house and land packages.

DSR – Debt Servicing Ratio – Measures repayment ability based on income.

DUAL OCCUPANCY – Two dwellings on one block of land.

DUE DILIGENCE (DD) – Comprehensive checks before buying a property.

DWELLING – A structure designed for people to live in (e.g. house, unit).

EASEMENT – Legal right of use over another person’s land.

ELECTRONIC FUNDS TRANSFER (EFT) – Online money transfer method.

EQUITY – Property value minus loan balance.

ESTATE AGENT – Licensed professional who sells or leases property.

EVIDENCE OF SAVINGS – Documents showing regular deposit behaviour.

EXIT FEE – Fee charged for closing a loan early.

EXIT STRATEGY – Plan to sell, refinance, or exit a property investment.

EXPRESSION OF INTEREST (EOI) – Statement of buyer’s interest in a property.

FAMILY GUARANTEE – Security provided by a family member to assist in borrowing.

FEE SIMPLE – Highest form of property ownership under Australian law.

FHLDS – First Home Loan Deposit Scheme – Buy with just 5% deposit.

FHOG – First Home Owner Grant – State-based grant for first-time buyers.

FHSS – First Home Super Saver Scheme – Use super to save a deposit.

FINANCE CLAUSE – Contract condition allowing withdrawal if finance isn’t approved.

FIRST MORTGAGE – Primary loan registered against a property.

FIXED RATE – Interest rate locked in for a set term.

FIXED TERM – Loan or lease with an end date.

FIXTURES – Items permanently attached to the property.

FORECLOSURE – Legal process where lender sells property to recover debt.

FULL DOC LOAN – Standard loan requiring full income evidence.

FULLY DRAWN ADVANCE – Loan fully paid at the start, repaid over time.

GARNISHEE ORDER – Legal order for debt recovery from wages or bank account.

GOVERNMENT GRANT – Financial assistance for eligible property buyers.

GROSS INCOME – Total earnings before tax or deductions.

GROSS RENTAL YIELD – Rent as a % of property value before expenses.

GUARANTOR – Person offering their assets as loan security.

HEM – Household Expenditure Measure – Lender benchmark for expenses.

HIA – Housing Industry Association – Major builder industry body.

HOLDING DEPOSIT – Small deposit securing a buyer’s interest.

HOME EQUITY – Difference between home’s value and mortgage owed.

HOME LOAN HEALTH CHECK – Review of current mortgage for possible savings.

IMPROVED LIVEABILITY – SDA category for tenants with sensory needs.

INCLUSIONS – Items included with property sale (e.g. appliances).

INDEPENDENT ADVICE – Legal or financial guidance from a third party.

INDEXED GROWTH – Increase in property value tied to inflation or market index.

INTEREST RATE – Percentage charged by the lender for borrowing.

INTEREST-ONLY LOAN – Loan where repayments cover interest only.

INTERIM OCCUPANCY – Occupation of a property before final settlement.

INTRODUCTORY RATE – Lower interest rate for a limited period.

INVESTMENT PROPERTY – Property purchased with the goal of generating income or capital growth.

INVESTOR LOAN – Loan tailored for purchasing investment properties.

IO – Interest-Only – Repayments don’t reduce the loan principal.

JOINT TENANTS – Equal ownership with right of survivorship.

KEY FACTS SHEET – Summary document showing home loan features and comparison rate.

LAF – Loan Application Form – Completed when applying for finance.

LAND AND BUILD PACKAGE – Combined land purchase and home construction.

LAND TAX – Annual tax on land value (varies by state).

LAND VALUE – Value of the land alone, excluding buildings.

LEASE AGREEMENT – Legal document outlining rental terms.

LEASEHOLD – Property occupation via lease for a fixed term.

LENDER – Financial institution that lends money.

LENDERS MORTGAGE INSURANCE (LMI) – Insurance to protect the lender, not the borrower.

LETTER OF OFFER – Formal loan offer from lender after approval.

LICENCE AGREEMENT – Legal right to occupy property (not a lease).

LIEN – Legal claim on property as collateral for debt.

LIMITED RECOURSE BORROWING – SMSF loan where lender's recourse is limited to the property.

LINE OF CREDIT (LOC) – Flexible borrowing up to a credit limit.

LINEAR GROWTH – Steady increase in property value over time.

LISTING AGREEMENT – Contract between property owner and agent to sell the property.

LMI WAIVER – Exemption from paying LMI (e.g. for doctors, defence).

LOAN AGREEMENT – Legal document outlining loan terms.

LOAN TERM – Length of time over which a loan must be repaid.

LOAN-TO-VALUE RATIO (LVR) – Loan size as a % of property value.

LOCATION PREMIUM – Increased value due to desirable property location.

LOW DOC LOAN – Minimal documentation loan for self-employed.

LOW EQUITY FEE – Lender charge for high LVR loans without LMI.

LOW START LOAN – Loan with low initial repayments that increase later.

LUMP SUM REPAYMENT – One-off extra payment to reduce loan balance.

MARKET COMPARISON – Analysis of property value using similar sales.

MARKET RENT – Typical rental income for similar properties.

MARKET VALUE – Price expected in an open property market.

MATRIX PRICING – Lender pricing model based on risk profile.

MEZZANINE FINANCE – Secondary loan with higher risk and interest.

MINIMUM REPAYMENT – Smallest required regular loan payment.

MORTGAGE – Legal agreement securing a property for a loan.

MORTGAGE BROKER – Finance expert who sources loans for borrowers.

MORTGAGE DISCHARGE FEE – Fee for finalising and closing a loan.

MORTGAGE INSURANCE – See LMI – covers lender risk on high LVR loans.

MORTGAGE MANAGER – Non-bank organisation managing mortgages.

MORTGAGEE – The lender (usually a bank).

MORTGAGOR – The borrower (property owner).

MULTI-UNIT DWELLING – Building with multiple residences (e.g. duplex).

NAB – National Australia Bank – one of the Big Four banks.

NATIVE TITLE – Indigenous ownership or land rights.

NEGATIVE EQUITY – When loan exceeds the property’s current value.

NEGATIVE GEARING – When expenses exceed rental income (for tax deductions).

NET RENTAL YIELD – Rental return after deducting property expenses.

NET WORTH – Total assets minus liabilities.

NO DEPOSIT HOME LOAN – Loan option where borrower contributes no upfront deposit.

NOMINEE – A person or entity appointed to act on your behalf.

NON-BANK LENDER – Finance provider not regulated as a traditional bank.

NON-CONFORMING LOAN – Loan outside normal lending criteria (e.g. credit issues).

NOTIONAL RENTAL INCOME – Estimated rent on an unrented property.

OFF-MARKET PROPERTY – Property sold without being publicly listed.

OFFSET ACCOUNT – Reduces loan interest by offsetting savings against loan.

OFFSET SUB-ACCOUNT – Secondary account used to offset loan interest.

OFF-THE-PLAN – Buying a property before it is built.

OPEN MARKET VALUE – Fair value of property based on public sale.

OPTION AGREEMENT – Contract allowing the future right to buy.

OWNER BUILDER LOAN – Loan for building your own home (without licensed builder).

OWNER-OCCUPIER – A person who lives in the property they own.

OWNERS CORPORATION – Entity managing common property in strata schemes.

PAYG – Pay As You Go – System where tax is deducted from wages.

PAYMENT HOLIDAY – Temporary break or reduction in loan repayments.

PERSONAL GUARANTEE – A borrower agrees to be personally liable for a loan.

PEXA – Online property settlement system used in Australia.

PORTABILITY – Transfer a loan from one property to another.

POSITIVE GEARING – When rental income exceeds expenses.

POSTCODE RESTRICTIONS – Lending limitations based on location risk.

POST-SETTLEMENT – Period after property ownership changes hands.

POWER OF ATTORNEY – Authority to act legally on someone else’s behalf.

PPOR – Principal Place of Residence – Your main home.

PRE-APPROVAL – Lender indication of borrowing capacity.

PRELIMINARY ASSESSMENT – Early review of borrowing eligibility.

PREMIUM LOCATION – High-demand suburb or area commanding higher prices.

PRINCIPAL – The original amount borrowed in a loan.

PRINCIPAL & INTEREST (P&I) – Loan repayments that reduce both debt and interest.

PRIVATE LENDER – Non-institutional individual or group providing finance.

PRIVATE TREATY – Property sale by negotiation, not auction.

PROGRESS PAYMENTS – Construction loan paid in stages as work completes.

PROPERTY DEPRECIATION – Tax-deductible wear and tear on investment property.

PROPERTY FLIPPING – Buying and quickly reselling for profit.

PROPERTY MANAGER – Person or agency managing rental properties.

PURCHASE PRICE – Agreed amount paid for a property.

RATE LOCK – Fee to hold a fixed interest rate before settlement.

RBA – Reserve Bank of Australia – Sets official cash rate.

RECEIVERSHIP – Process when control is taken over a property due to loan default.

REDRAW FACILITY – Access to extra repayments made on your loan.

REFERRAL FEE – Payment made for recommending a client or product.

REFINANCE – Replace one loan with another for better terms.

RENT ROLL – List of properties managed by an agent.

RENTAL GUARANTEE – Fixed rental return promised for a certain period.

RENTVESTING – Renting where you live and investing elsewhere.

REPAYMENT FREQUENCY – How often repayments are made (weekly, fortnightly, monthly).

RESIDENTIAL PROPERTY – Property used for housing, not business.

REVERSE MORTGAGE – Loan allowing older borrowers to access home equity.

RISK ASSESSMENT – Lender’s evaluation of loan applicant’s risk.

ROBUST HOUSING – SDA category with strong and durable design features.

ROLLING OVER LOAN – Extending or renegotiating loan terms at expiry.

SALES COMPARISON APPROACH – Valuation method using comparable sales.

SDA – Specialist Disability Accommodation – NDIS-approved housing.

SECOND MORTGAGE – Additional mortgage behind the primary loan.

SECURITISATION – Pooling home loans into investment products.

SECURITY – Asset offered as loan collateral.

SELF-EMPLOYED LOAN – Specialised loan product for business owners.

SELF-MANAGED SUPER FUND (SMSF) – Private super fund managed by members.

SERVICEABILITY – Borrower’s ability to meet loan repayments.

SERVICEABILITY BUFFER – Extra interest rate used in lending assessment.

SETTLEMENT – Legal transfer of property ownership.

SETTLEMENT AGENT – Professional who facilitates the legal and financial aspects of settlement.

SETTLEMENT DATE – The day ownership of property officially transfers to the buyer.

SETTLEMENT DELAY – Postponement of property settlement.

SETTLEMENT STATEMENT – Breakdown of financial transactions and adjustments at settlement.

SHARED EQUITY SCHEME – Buyer and government/lender co-own the property.

SIL – Supported Independent Living – NDIS support that may accompany SDA.

SINGLE CONTRACT PACKAGE – House and land sold under one contract.

SINGLE SECURITY LOAN – One property used as loan collateral.

SITE COSTS – Expenses to prepare land for building.

SPECIAL CONDITIONS – Custom clauses added to a sale contract.

SPLIT LOAN – Loan divided between fixed and variable portions.

STAMP DUTY – Government tax payable when buying property.

STAMPING – Government approval and processing of contracts.

STANDARD VARIABLE RATE – Lender’s benchmark interest rate.

STRATA – Ownership model for shared properties like apartments or townhouses.

STRATA FEES – Regular payments for upkeep of common areas.

STRUCTURAL GUARANTEE – Builder warranty covering major defects.

SUBDIVISION – Splitting land into separate titles or lots.

SUBJECT TO CLAUSE – Sale condition like finance or inspection.

SUNSET CLAUSE – Contract term that sets an expiry date if conditions aren’t met.

SURVEYOR – Licensed expert who maps land boundaries and prepares plans.

SWITCH FEE – Fee to change loan types or terms.

TENANCY AGREEMENT – Legal contract between landlord and tenant.

TENANT – Person renting or leasing a property.

TENANT DEMAND – Market interest in renting in a specific location.

TENURE – Legal period of property ownership or lease.

TERM LOAN – Loan with a fixed term and repayment schedule.

THIRD-PARTY SECURITY – Property owned by someone else used as collateral.

TIME IN MARKET – Duration property is listed before selling.

TITLE DEED – Document proving legal ownership of property.

TITLE INSURANCE – Policy covering title-related issues.

TITLE SEARCH – Legal check of ownership and encumbrances.

TOTAL INTEREST PAYABLE – Cumulative interest due over the loan term.

TOTAL LOAN COST – Overall loan cost including fees, interest, and charges.

TRANSFER DUTY – Another term for stamp duty.

TRUST ACCOUNT – Client funds held securely by agents or lawyers.

TURNKEY PACKAGE – Complete property delivered ready to occupy.

TURNKEY PROPERTY – Property delivered fully completed and ready for use or rental.

UNDERWRITING – Detailed risk assessment process used by lenders.

UNENCUMBERED – Property not used as collateral for any loan.

UNIMPROVED LAND VALUE – Land valuation excluding structures and improvements.

UNSECURED LOAN – Loan not backed by collateral.

UPFRONT COMMISSION – One-time payment from lender to broker for loan origination.

VACANT POSSESSION – Property must be vacant upon settlement.

VALUATION – Independent assessment of a property's market value.

VALUATION FEE – Fee charged by lender for property appraisal.

VALUATION SHORTFALL – When property is valued lower than the purchase price.

VALUER – A certified person who determines property value.

VARIABLE LOAN – Home loan with fluctuating interest rate.

VARIABLE RATE – Interest rate that changes with the market or lender's discretion.

VENDOR – The seller in a property transaction.

VENDOR FINANCE – Loan provided by the seller rather than a bank.

VENDOR STATEMENT – Document outlining legal details of the property for sale.

VERIFICATION OF IDENTITY (VOI) – Required legal step to confirm buyer/seller identity.

VIC – Victoria – Australian state with unique property laws.

VOID CONTRACT – Legally unenforceable agreement.

WA – Western Australia – State with its own property and tax rules.

WARRANTY – Guarantee provided by builder or manufacturer.

WARRANTY INSURANCE – Insurance covering builder defaults or defects.

WITHDRAWAL FEE – Fee charged for accessing funds from certain loan types.

ZONING – Land-use classification regulated by local council (residential, industrial, etc.).

ZONING RESTRICTIONS – Local rules determining land use and development.


Conclusion

Whether you're a first-time buyer, seasoned investor, SMSF trustee, or simply trying to make sense of mortgage jargon, understanding the language of Australian property is essential.

At Aus Investment Properties, our mission is to make property investing clearer, smarter, and more accessible for everyday Australians. This glossary is designed to support your journey — whether you're evaluating a new co-living opportunity, refinancing through your SMSF, or comparing dual occupancy options.Now you have a better understanding of investment shorthand, please click here to view all our properties www.ausinvestmentproperties.com.au