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We’ve all had moments of being stumped when the jargon is flying around. Become an expert on the ins and outs of home loans with our quiz.

What is a bridging loan?

A loan used to cover the finance gap that can happen when a buyer purchases a new property before selling an old one.

The old-fashioned term for a loan used to cover home renovation.

A loan two neighbouring homeowners can take out when something they co-own needs repairing such as a fence or driveway.

Correct!

Wrong!

Define discharge fee.

The fee incurred after a loan has been paid off to cover any extra costs during the repayment period.

A fee that you generally pay if you refinance with a different lender or have paid off your loan.

A fee charged when your apartment’s drainage system is acting up.

Correct!

Wrong!

What’s an offset account?

A loan taken out specifically for homes that are set back from the street.

A secondary account opened to gain more interest.

A savings or transaction account linked to a home loan that offsets the interest charged on your home loan.

Correct!

Wrong!

What is a fixed rate?

A rate charged to a financial advisor who assists a customer lower their debt.

An interest rate that varies based on a customer’s salary.

An interest rate that applies to a loan for a set term and doesn’t change.

Correct!

Wrong!

Who is a guarantor?

A person that agrees to be responsible for the payment or portion of a loan - if the borrower defaults or is unable to pay.

The administrator in charge of ensuring payments are made on time.

The financial organisation that is lending money.

Correct!

Wrong!

What does LVR refer to?

Loan to value ratio: the percentage of the loan amount compared to the value of the property.

Lovely versatile renovation: a real estate term to describe a property that will be highly valuable after a renovation.

Lease variable rate: The government tax for a person who is leasing more than one property.

Correct!

Wrong!

What is capital gains tax?

A federal tax on the ownership of goods worth over $10,000.

A federal tax on the monetary gain made on the sale of an asset.

A tax incurred on a person who has a portfolio of more than five properties.

Correct!

Wrong!

Define negative gearing.

When a buyer purchases a property they cannot afford and are forced into debt.

The term for the financial loss a financial company makes when approving a loan that will be returned in the future.

When money is borrowed to invest and the return you make on this investment is less than your expenses.

Correct!

Wrong!

What is stamp duty, transfer duty or general duty?

The legal requirement that ensures a customer makes their repayments on time.

When you have to have all your documents stamped by a JP.

A state or territory government tax based on the purchase price of a property.

Correct!

Wrong!

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