Australian Property Glossary
Key property terms explained in plain English. Understand stamp duty, conveyancing, LMI, title types, and more.
What is Stamp Duty?
A state government tax paid when you buy property in Australia, calculated as a percentage of the purchase price.
Learn moreWhat is Conveyancing?
The legal process of transferring property ownership from seller to buyer, including contract review, searches, and settlement.
Learn moreWhat is LMI (Lenders Mortgage Insurance)?
A one-off insurance premium protecting the lender (not you) if you default, required when your deposit is less than 20%.
Learn moreStrata vs Torrens Title: What’s the Difference?
Strata title means you own a lot in a shared complex with body corporate fees; Torrens title means you own the dwelling and land outright.
Learn moreHow Long Does Settlement Take?
Property settlement in Australia typically takes 30 to 90 days from exchange of contracts, depending on state and negotiated terms.
Learn moreHow Much Deposit Do You Need for a House?
Most lenders require at least 5% deposit, but 20% is recommended to avoid Lenders Mortgage Insurance and secure better loan terms.
Learn moreWhat Are Settlement Adjustments?
Financial calculations at settlement that divide ongoing property costs like council rates, water rates, and strata levies between buyer and seller based on the settlement date.
Learn moreWhat is a Deposit Bond?
A guarantee from an insurer that substitutes for a cash deposit at exchange, allowing you to defer the deposit payment until settlement.
Learn moreWhat is a Lender's Valuation?
An independent property valuation commissioned by the lender to determine how much they will lend, based on comparable sales rather than the purchase price.
Learn moreWhat is Exchange of Contracts?
The point where buyer and seller sign the contract of sale, the deposit is paid, and both parties become legally bound to complete the property transaction.
Learn moreWhat is Negative Gearing?
An investment strategy where rental property expenses exceed income, allowing the loss to be deducted from your other taxable income.
Learn moreWhat is Capital Gains Tax on Property?
The tax you pay on the profit when you sell an investment property, calculated by adding the net capital gain to your taxable income at your marginal rate.
Learn moreWhat is Equity in Property?
The difference between your property's current market value and the amount you still owe on your mortgage — it represents the portion you truly own.
Learn moreWhat is a Building Inspection?
A professional assessment of a property's structural condition, covering the roof, walls, foundations, plumbing, and electrical systems before you buy.
Learn moreWhat is a Pest Inspection?
A professional examination of a property for termites, borers, and wood-decay fungi — essential before buying to avoid costly hidden damage.
Learn moreWhat is a Strata Report?
A detailed review of a strata scheme's finances, by-laws, meeting minutes, and disputes, ordered before buying a strata-titled property.
Learn moreWhat is Body Corporate?
The legal entity of all lot owners in a strata scheme, responsible for managing common property, collecting levies, and enforcing by-laws.
Learn moreWhat is a Sunset Clause?
A contract provision allowing buyer or developer to cancel an off-the-plan purchase if settlement has not occurred by a specified deadline.
Learn moreWhat is a Finance Clause?
A contract condition that lets the buyer withdraw and recover their deposit if they cannot obtain formal loan approval within a specified timeframe.
Learn moreWhat is a Building and Pest Clause?
A contract condition allowing the buyer to withdraw or renegotiate if a building and pest inspection reveals unsatisfactory defects within the agreed timeframe.
Learn moreWhat is a Mortgage Offset Account?
A transaction account linked to your home loan where the balance reduces the principal on which interest is calculated, saving you money without locking funds away.
Learn moreFixed vs Variable Rate Home Loan: Which Should You Choose?
Fixed rates lock in your repayments for a set period; variable rates move with the market and offer more flexibility. A split loan combines both.
Learn moreWhat is a Depreciation Schedule?
A report prepared by a quantity surveyor that estimates the decline in value of an investment property, allowing investors to claim tax deductions on the building and its fixtures.
Learn moreWhat is a Guarantor Home Loan?
A home loan where a family member uses equity in their property as additional security, allowing the borrower to buy with a smaller deposit and avoid paying LMI.
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