We've curated a list of glossary terms and definitions to help you debunk common industry terminology. Learn more.
A loan specifically for building a home as opposed to buying an established property. It has a different structure to home loans for existing properties in that the loan funds are drawn down at different stages as the construction progresses.
The transfer of legal title of real estate or land from one person to another. In Western Australia, conveyancing can be done by a solicitor or licensed settlement agent (also known as a conveyancer).
You can read more from A guide to settlement.
A report from an authorised agency that shows the borrower's credit history. Lenders access the information in your file to help them decide whether to lend to you. They can also record a default on your file if you make loan repayments late, or don’t pay a utility bill. Every time you make an application for finance an entry is recorded on your file showing the lender you applied to, the type of finance, the amount and the date.
Keystart allows you to make extra repayments towards your loan account at any time. These extra repayments may assist you in paying off your loan sooner and reduce the amount of interest paid.
An insurance payment paid by you as the borrower to a lender to cover them if you cannot make your repayments. If you are able to, you can pay the premium up front. Otherwise it can be capitalised to your home loan amount, to be paid off each month. Keystart does not charge lender's mortgage insurance on any of its loans.
A mortgage is the legal document that allows a property or real estate to be used as collateral for a home loan. The mortgage allows the lender a legal mechanism to take possession or sell the property if the borrower (mortgagor) defaults on the loan.
Your home loan repayments are both the loan amount (the principal) and the interest on that loan.
Payments made from your Keystart construction loan to your builder when you’re building. The loan funds draw down in stages as the building work progresses.
The legal process of transferring ownership of a property from seller to buyer. This process is generally undertaken by a licenced settlement agent.
Allows individual ownership of part of a property called a ‘lot’ (generally an apartment or a townhouse) combined with shared ownership in the remainder called ‘common property’, for example driveways, foyers and gardens through a legal entity. This legal entity is often referred to as a body corporate or strata company.
An estimation or assessment of the current market value of your property. Valuations must be carried out by an independent and qualified property valuer, whereas a property appraisal can be undertaken by a real estate agent. In some instances, an independent valuation is required, for example for a Keystart shared ownership customer, we require an independent valuation to determine how much is owed to the Housing Authority when selling or refinancing the property.
The interest rate on a variable rate home loan can change at any time, either up or down. The rate can be influenced by changes in the Reserve Bank of Australia's official cash rate, or the lenders own costs. Market circumstances and competition between lenders can also lead to interest rate changes, which can affect the interest rate of your loan. The interest rates on all Keystart loans are variable.