Glossary of terms

Acceptance

Usually, acceptance of an offer, according to the terms of the offer, creates an enforceable agreement or contract.

Agent

A person authorised to act on behalf of another person in the sale, purchase, letting or management of property. A real estate agent must be licensed by the relevant authority in their State/Territory.

Additional Cardholder

The Additional Cardholder is a person to whom a card on your credit card account is issued at your request. An additional card enables an additional cardholder to make purchases and obtain cash advances on your card account. You are responsible for all transactions made by the additional cardholder on your card account.

Annual Percentage Rate (APR)

The annual percentage rate is the interest rate on your card expressed on an annual basis.

Apartment

See Home Unit.

Appreciation

The increase in the value of an asset (such as property) caused by economic factors such as inflation, or an excess of demand over supply for that property type.

Approved Overdraft facility

An approved overdraft facility is a facility that allows you to draw credit up to an approved credit limit on your account.

ATM Mini Transaction history

A mini transaction history is a list of the last 10 transactions which can be printed from any BankSA/St.George ATM or the last 8 transactions from a BankSA Electronic Agency. Please refer to your Fees and Charges booklet for more information.

Available credit

Available credit means any unused portion of your credit limit, excluding the value of any uncleared cheques credited to your card account.

Balance owing on your credit card account

This means at any time, the difference between all amounts credited and all amounts debited to your card account at that time. When this amount is to be calculated for the end of a day, it includes all debits and credits assigned to that day.

Bank@Post™

Bank@Post™ is an agency banking service offered at over 3,100 online Australia Post outlets. It allows you to use your credit or debit cards at the post office to undertake a variety of financial transactions including deposits and withdrawals, account balance enquiries and payments for credit card bills.

Bond

A sum of money paid by a tenant and held by the Rental Bond Board to protect against losses from non-payment of rent and damage done to the rental property.

Breach of contract

Breaking the conditions of a contract.

Bridging Finance

Finance obtained over a short period, as a "bridge" to long-term funding. Higher interest rates may be charged for bridging finance.

BSB

BSB is an acronym for Bank State Branch number. This six-digit number represents your bank and the branch where your account is held. You will need this number when setting up automatic payments such as periodical payments or direct debits between BankSA and another party. You can find the BSB on the top right hand side of your account statement or in the "Account Information" section, next to the Account Number listing when you log onto Internet Banking. If you have a chequebook with your account, your account BSB is also printed on each cheque, in between the cheque number and the account number.

Buffer (Margin Lending)

Every investment has risks. Margin Lending is no exception. However, to help protect you from fluctuations in the share market that could result in a margin call the following buffers are currently 'built-in' to the value of your investment:

• 5% for shares with a gearing ratio of more than 75%
• 10% for shares with a gearing ratio of 75% or less
• 10% for managed funds

It is expected that whilst you are in buffer you take action to bring your account back below the appropriate gearing ratio to help manage your risk of being in a margin call.

Caveat

"Beware" – if a caveat is lodged on a title to land, it warns a person buying the property that a third party (the party that lodged the caveat) has some right or interest in the property.

Caveat Emptor

"Let the Buyer Beware" - this principle of law requires the buyer to be satisfied with the item they wish to buy before buying. The buyer purchases the property "as is".

Cash Advance

You can use your credit card to get cash across the counter at branches of BankSA or through the worldwide network of cash machines that carry the Visa^® or MasterCard^® logo using your PIN.

Certificate of Title

A document identifying the ownership of land. It shows who owns it and whether there are any mortgages or other encumbrances on it.

Chattels

Property other than real estate, such as moveable possessions that may be included in a sale, e.g. furniture.

Clear Title

A vendor has a clear title when there are no interests (like an outstanding mortgage) on the vendor’s title.

Common Law Title

Usually referred to as "old system title", it consists of a series of title documents called "a chain of title". The title to a property held under this system is “clear” only if every document in the chain is available and complete (ie, the chain of title is unbroken). Legal costs associated with a purchase of Old System Title land are higher than those on a purchase of Torrens Title land, because making a thorough investigation of the chain of title can be complicated and time consuming. Old System Title may be converted to Torrens Title, and often can be automatically converted to Torrens Title following a sale.

Comparison Rate

The comparison rate helps you compare one loan with another so you know how much you will pay over the life of the loan. While the interest rate is a major component, it’s not only the cost. There are other fees and charges that affect the true cost of the loan. The comparison rate calculates fees associated with setting up the loan, such as establishment and service fees. It doesn’t include government charges or early pay out fees.

Contract of Sale

A document that sets out the terms and conditions of sale between the vendor and the purchaser (referred to as a "Contract").

Conveyance

The process of transferring the ownership of property from the vendor’s name to the buyer’s name.

Cooling off period

This is a period of time, which may vary between 24 hours and 14 days from the time it is signed (depending on the type of contract), when you or your organisation can decide not to continue with a contract. Cooling off periods vary in each state in Australia.

Covenant

An agreement noted on the title to a property requiring the property's owner to adhere to certain terms, conditions or restrictions regarding the property. The nature of any covenant over a property should always be established before you enter into a contract to purchase the property.

Cover Note

A document issued by an insurance company, to temporarily insure a property until a formal policy is issued, following payment of the requisite premium.

Credit Limit

The credit limit is the maximum amount of credit you or any additional cardholder can normally obtain on your card account.

Deed

A formal document including special signing requirements recording an agreement, obligation or conveyance of property.

Deeming rates

The Federal Government sets the deeming rates based on assumed rates of return on financial investments.

Deposit

When purchasing a property, the buyer normally pays a deposit at the time of exchanging contracts. It is normally between 5-10% of the total purchase price.

Direct Debit

A direct debit is a transfer of funds from your BankSA account drawn under a direct debit request you have given a third party.

EFTPOS (Electronic Funds Transfer at Point Of Sale)

EFTPOS means a point of sale electronic banking facility available at retail or wholesale outlets.

Email Alerts

Account information that is provided to you via Email. Once you register for this service, you can request specific information such as account balances, deposits or withdrawals.

Franked Dividends

Franked dividends are dividends (profit payments) paid to shareholders on which corporate tax has already been paid. Effectively this gives the shareholder tax credits that can be offset or claimed against their personal income tax liability.

Gazumping

Gazumping may take two forms:

• The intending buyer believes that the property has been secured by payment of a holding deposit, and proceeds to arrange finance, legal and other matters. When ready to exchange contracts, the intending buyer finds that another buyer (of which he or she was unaware) has exchanged contracts with the vendor on the same property.
• The vendor or real estate agent accepts two or more deposits and then before contracts are exchanged, tells the intending purchasers that the price has gone up. The intending buyers are then left to outbid each other as if it were an auction.

Gearing

Borrowing funds to leverage or boost your investment power.

Home Unit

A residential dwelling grouped with others, having shared common areas and owned under Strata Title, Company Title or other group title system.

Internet Banking

Internet Banking is an electronic means of accessing your account information and conducting your banking online. You can access transaction information as well as transfer funds and pay bills using BankSA Internet Banking.

Interest Free Days

If you have interest free days on your card account, you are not charged interest on purchases, interest charges (if any) or on our fees listed on a statement if you always pay the full closing balance (excluding the balance of any cash advances) on a statement by the due date. There is no interest free period for cash advances.

Interest Offset facility

An Interest Offset Facility is an arrangement with the Bank that allows you to offset the interest you would earn on your savings account against interest you pay on your loan account. The interest charged to your home loan is calculated on the difference between the home loan balance less the balance in your savings account. The benefit is the same as if you had paid the savings into your home loan but without the money leaving your transaction account!

Investment

The purchase of an asset (like real estate) in order to produce capital gain on resale or to earn income or both.

Land Tax

A State government tax payable by owners of property based on the unimproved capital value of the property.

Lease

A lease is a document granting possession of a property for a given period, subject to the payment of rent, without conferring ownership. The lease document specifies the terms and conditions of occupancy and rent payable.

Lender’s Mortgage Insurance (applicable to home loans)

There are a number of variables that influence whether or not lender's mortgage insurance is required. Generally, it is required if you are borrowing more than 80% of the value of the property (60% for Low Doc Home Loans), however this condition varies depending on property type, location of the property, loan type, etc. Lender's mortgage insurance protects the lender, not the borrower(s), against loss in the event that you default on the loan. This should not be confused with mortgage protection insurance for borrowers. In the case of foreclosure, if the property is subsequently sold by the lender at a price that does not cover the outstanding amount of the loan in full, lender's mortgage insurance will cover the difference in the debt still owed to the Bank after the sale of the property.

Lessee

A person who obtains possession of a property under a lease.

Lessor

A person who owns a property and allows another to occupy it under a lease.

Line of credit

A line of credit is an amount of money that can be borrowed, but on which interest is only paid when some or all of the credit is assessed.

Linked account

Linked account means any account, other than your card account, that is linked to your card.

Loan to value ratio

Loan to value ratio (LVR) is the amout of your loan compared to the value of your property or asset purchased with the loan funds, expressed as a percentage. For example, a loan of $400,000 to buy a property worth $500,000 results in a loan to value ratio of 80%. Banks place a limit on the loan to value ratio depending on things such as the type of property, the location and the financial position of the borrower.

Low Doc

Low Doc is a loan application method you can use if you are self employed. It means you do not need the standard income verification to apply for a home or investment loan.

Maestro and Cirrus

Maestro and Cirrus are international networks of EFTPOS terminals and ATMs. Generally, BankSA Maestro/Cirrus ATM cardholders have access to these networks when overseas.

Margin call

A margin call occurs when falls in the value of your security cause your current Margin Loan balance to exceed your borrowing limit plus your buffer. If this occurs you must repay part of your loan at the time and on the day we indicate you must meet the margin call (normally by 2pm Sydney time on the day after you have been notified).

Mortgage

A legal document that gives a lender an interest over a property to secure the payment of money, or the performance of an obligation owed, to a lender.

Mortgagee

Someone who lends money on the security of a mortgage.

Mortgagor

Someone who borrows money offering the security of a mortgage.

Non- BankSA/St.George ATMs

Any ATM that is not BankSA or St.George or branded.

Negative gearing

The ability to claim a tax deduction for 'shortfalls' experienced when the expenses incurred in holding an investment are greater than the income earned from that investment.

Periodical Payment

Periodical Payment is a transfer of funds that we make on a regular basis at your request from your BankSA account to another specific account.

Phone Banking

A telephone banking service that allows you to perform transactions and access information about your account using any touchtone telephone.

PIN

PIN means a personal identification number or word used in conjunction with a card.

Progress Payments

Payments/instalments advanced on a construction loan which, during the construction period, are paid by the lender to a builder as the building progresses. Progress payments are made on completion of pre-determined and agreed stages of construction.

Principal and interest loan

A loan made under a principal and interest repayment condition is the most common form of housing loan. The repayments are calculated so that over the term of the loan, both the principal amount borrowed initially and the interest payable over the term of the loan, are repaid in full by the end of the loan’s term.

Redraw

If this feature is available on your home loan, you can reduce your repayments by up to 50% for as long as 6 months during periods of large expenses or reduced income, such as extended holidays or renovations.

Repayment holiday

If this feature is available on your home loan and you have built up extra funds in your loan, you can stop making repayments for a while.

Security

The value of the cash, investments or assets you provide to secure your loan.

Serviceability

Serviceability refers to your capacity to make and meet repayments on a loan, based on your expenses and income.

SMS Alerts

Account information that is provided to you using your mobile phone via Short Message Service (SMS). Once you register for this service, you can request specific information such as account balances, deposits or withdrawals.

Stamp Duty

A State Government Tax. For contracts of sale it is calculated according to the sale value on the contract. For mortgages, it is calculated on the amount to be advanced and secured by a mortgage.

BankSA branded ATMs

An ATM that is BankSA or St.George branded.

Strata Title

A system of title that allows the owner of a unit, in a block of units, to have separate title for that unit.

Unencumbered

Usually describes a property free of mortgage interests.

Valuation

A written opinion of a property’s value by a valuer.

Vendor

A person who offers a property for sale.

Visa^® Debit Card

A debit card that displays the VISA logo and lets you access your account through the global VISA network.

Visa^® Plus

Visa Plus is an international network of ATMs. Generally, BankSA FreedomCard ATM cardholders have access to ATMs overseas displaying the Plus logo.