In certain circumstances, the deposit paid by a property purchaser can be released to the vendor prior to the sale settlement.

A redraw loan enables you to make extra regular or one-off payments above your minimum monthly repayment. The redraw facility allows you to access those extra payments when you need them.

LMI is a one-off, upfront insurance premium that is generally payable when you borrow more than 80% of the property value. It does not protect you as a borrower. It protects the lender in the event that you default on the loan, and they have a shortfall in funds after selling the property.

If you have selected a Fixed Rate home loan, the fixed rate that will apply will be the advertised rate on the date of settlement

Stamp Duty
Conveyancing
Moving
Building or Contents insurance
Lender application fees
Building inspection, pest inspection and strata reports
Proportion of Rates/etc at settlement

A negatively geared investment property is one where the cost to own and maintain it (loan interest, council rates, maintenance etc) are higher than the rent received. The net outgoings create a loss that is usually an allowable tax deduction.

An auction is conducted in public on a date set by the vendor. If you intend to make a bid, you or your representative will have to attend the auction to make an offer. You will win the auction if you’ve offered the highest bid above the vendor’s reserve price. If all bids are under the vendor’s asking price, the property is “passed in” and the auction is finished. Private negotiations will then usually take place with the auction’s highest bidders.

If you make a written offer on a property, you should consider having a finance clause. You should confirm with your conveyancer on how to word this clause

Most Australian states have their own First Home Buyers incentive programs.

When you borrow money to buy a property, the lender will take a mortgage over that property to secure the loan – one loan and one security property.