Glossary
Secured lending glossary
The terms you'll meet in a private mortgage Letter of Offer, explained in plain English with Australian examples.
Deed of priority
A deed of priority fixes which lender is repaid first and often caps the first lender's claim. Who signs it, when it's needed and what it means for you.
Read more →Caveatable interest
A caveatable interest is the claim to land that entitles someone to lodge a caveat. Why a loan with a charge clause creates one and an unsecured debt doesn't.
Read more →Discharge of mortgage
A discharge of mortgage removes a repaid loan from the title. Payout figures, discharge authorities, PEXA lodgement and partial discharges, explained simply.
Read more →Mortgagee in possession
A mortgagee in possession is a lender that has taken control of a property after default. How it happens, the lender's duties and your way out.
Read more →Default interest
Default interest is the extra charge a loan contract applies once you're in default. What triggers it, how it builds up, and the simple habits that avoid it.
Read more →Loan-to-value ratio
LVR compares what's owed on a property with what it's worth. How private lenders work it out for first and second mortgages, and why the end figure counts.
Read more →Registered mortgage
A registered mortgage is recorded on the land titles register, ranks by lodgement and carries a power of sale. How it compares with a caveat.
Read more →First mortgagee
The first mortgagee is the lender holding the top-ranked mortgage on a title. What it controls, when its consent matters and how it shapes a second mortgage.
Read more →Exit strategy
An exit strategy is the dated event that repays a short-term secured loan. Common exits, what makes one believable and sale-day deductions people forget.
Read more →Capitalised interest
Capitalised interest is added to the loan balance instead of being paid monthly. How it builds, how it affects your equity and payout, and who it suits best.
Read more →Prepaid interest
Prepaid interest is set aside from the loan at settlement, so there are no interest payments during the term. How it's sized and what to check.
Read more →Letter of offer
A Letter of Offer is a lender's written, conditional offer to lend. What it sets out, how it differs from the loan agreement and what to check.
Read more →See what your business could qualify for
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