We put an end to home loan jargon.
And, in our everyday Tic:Toc way, provide you with the human version of all the jibber jabber, below.
Tic:Toc’s birthplace and headquarters. We may be biased, but we love the lifestyle here. And so do the rest of the world. Adelaide was ranked in the top 10 of the World's Most Liveable Cities index in 2010, 2011, 2012 and 2015 in the Economist Intelligence Unit’s (EIU) liveability survey. Lonely Planet ranked SA one of the top five must-see regions in the world for 2017. Just sayin'.
The thing you provide to Uber eats. You will need a specific property address to apply for a Tic:Toc home loan.
We operate an AVS (Address Verification System), which means that in almost every instance, we have all Australian properties on a database. So this should be as rare an occurrence as Victoria Beckham smiling at camera.
The agreed length of time you have to repay your loan. We agree to it during the application, and you can reduce it by making additional repayments.
That’s you. And yours.
Your personal pathway to home loan approval. Your application data is always concealed and confidential. We keep your details ‘in play’ and valid for 60 days, so that you can update your personal information from any device, at any time. After that, your information will be stored securely for seven years.
Single application – just for you.
Joint application – for you and a co-borrower.
Something we think shouldn't exist. You’ll never be charged any fees to apply for a Tic:Toc home loan. Zip, nada, zilch.
The act of estimating or judging the value of a property. The Tic:Toc robot uses specific algorithms to value the property you wish to purchase (see AVM).
The increase in the value of your property.
The nod to say we’re delighted to give you a Tic:Toc home loan.
Tic:Toc is a responsible lender. So, we’ll ask a series of questions that helps us get a little more acquainted and gives a view of your financial circumstances. We have to get a bit friendly before we seal the deal, right?
Tic:Toc is the first and only app-to-key home loan. One process online. No mad scurry of paperwork gathering to get approved. No bank or broker visit. Tick, tick, tick.
Something you will never get with a Tic:Toc home loan. It’s a set-up fee for your home loan, which some lenders and brokers will add to your loan. But this will mean you pay interest on it for the life of the loan.
An overdue amount of money.
An assessment rate is a special, higher rate which lenders use to calculate whether you could continue paying your loan in the event of a rate rise. The rates are typically 2% or 3% higher than the advertised rate and exist as a buffer for both you and the lender.
Tic:Toc is a technology based company. We will always use technology to assess your application, where possible. We have external providers who check the value of a property, by combining clever mathematical modelling with existing property and land databases. This process is called an AVM. A property's value is calculated at a specific point in time by analysing values of comparable properties.
For more information on the statistical model visit Core Logic.
A unit of measure used in finance to describe a percentage change in the value of something. In the world of home loans, it refers to interest rates. One basis point equals 0.01% interest. So, 25 basis points equals 0.25%.
A charge that can occur if you “break up” with your current loan for a hotter model.
It usually happens when you switch your loan from a fixed to a variable rate during the fixed rate period. Or for ending your fixed term loan before the agreed date.
A bridging loan provides funds to buy your next home before you’ve sold your current one. It covers the deposit and other buying costs, such as stamp duty. Once you settle on your old home, the proceeds of sale are paid as a lump sum to repay the loan balance and interest repayments on the bridging loan. Tic:Toc doesn’t bridge.
A detailed look inside and around the property before you purchase it, mainly to ensure the building is structurally sound. Contracts of sale can be made subject to a satisfactory building inspection.
It isn’t mandatory, however, we recommend this for your own peace of mind.
Legal or statutory rules set up by a local council to control the quality of the buildings in its jurisdiction. These rules are designed to ensure health and safety, as well as acceptable standards of construction. But with a Tic:Tic loan, you must be purchasing an established property.
The amount of money you have saved to buy a property.
Otherwise known as Darryl Kerrigan’s home. At Tic:Toc, we respect that everyone’s home is their castle. That’s why we want to make the loan to get your home as quick and seamless as possible.
A record of all current information relevant to your property, including:
- current ownership details;
- any registered encumbrances or caveats;
- lot or plan details.
We will hold this document as security. Once the loan is fully repaid, the Certificate of Title is returned to you.
Home loan lenders may pay commission to third parties (e.g. brokers) based on the business they bring to the lender. It is paid as an upfront payment and an ongoing commission (trail). Commission is also paid by home owners to real estate agents when they sell their house.
A way of understanding the true cost of a loan, and to compare credit providers on an even playing field. You can use the rate to compare the total interest, fees and charges that are payable over the life of your loan between different home loan providers. This can help you to see what the actual cost of their loan will be, and not just the interest rate.
An indication of how much you can borrow (based on the information you've given us) without having final approval for a specific amount of money we can lend you.
At the point of ‘consent’ in the Tic:Toc home loan process, we will formally identify that you are who you say you are and that the information you have given is true. This is the point in the process where things get a little more serious.
Your credit file is your personal information and is a demonstration of your historical ability to repay money. In most instances, your home loan is the largest amount you will ever borrow, so you must give Tic:Toc your consent to review this file. This is sometimes referred to as “pulling your file” (not pulling your leg, we promise).
Usually, this term is used in reference to any debt you may have. Banks usually like things tied up with a neat little bow and, as such, like it when you have the one debt. This isn’t a prerequisite for a Tic:Toc loan, and we won’t let you consolidate debt into your home loan.
The expert who represents you during the time when the property you’re purchasing is transferred from the old owner to you.
You can appoint a conveyancer to manage the settlement of the home loan. The conveyancer acts on your behalf and they’ll prepare and translate the legal documents such as the contract of sale and the memorandum of transfer. It is in your best interest to appoint someone to ensure you are protected and legally safe. But it’s not legally required. They’re not necessary if you’re refinancing.
The legal process of transferring the title of a property from one person to another. From the seller’s name to the buyer’s name.
The maximum amount you can borrow under your home loan contract.
A report from an authorised credit reporting body, which shows your credit history.
A loan setup that occurs when more than one property is used to secure a loan or multiple loans.
For example, say you own Property A and you want to purchase Property B without using any of your own funds. A bank can use both properties as collateral, or security for repayment of the new loan. The collateral can be forfeited in the event of a default. Tic:Toc doesn’t do this – you just provide us with the details of one property to buy or refinance.
Once you have completed your application, we will, in most instances, give you an instant decision. As you may know, if you decide to upload documents for one of our Tic:Toc humans to review, your decision will take a lot longer to process (an extra business day, usually).
A legal document that states all information on the ownership of a property.
When unfortunate circumstances arise and you can’t abide by the terms of the loan agreement anymore. You may not be able to make minimum required repayments. When a homeowner ‘defaults’ on their loan, it may result in financial penalties or legal action to repossess the property.
These are the precious people who rely on your household income to live their lives.
This is your contribution to buy – the portion of the purchase price that you, the buyer, are willing to pay to secure the property you want. To qualify for a Tic:Toc loan we require a minimum of 10% (for investment and interest only loans you’ll need at least 15%) of the total purchase price as a deposit.
An alternative to paying the deposit from your own immediate funds. Deposit bonds can be issued for all or part of your deposit, usually up to 10% of the property purchase price. Once you’ve settled, the deposit bond amount is paid back to the lender, usually your bank. At Tic:Toc we don’t deal with bonds. Unless they have a first name, like James.
A document signed by the lender and given to the borrower when a home loan has been repaid in full. Yippee!
The day you spend your loan funds for the first time. To buy or refinance your home (not at the casino).
A legal term. It refers to any outstanding liability or burden on a property that lessens its value or makes it less marketable. This includes a home loan, unpaid taxes or other claim on the property. There are properties Tic:Toc can't lend against if we find encumbrances on the title.
The amount of the property that you own outright, which means your deposit plus the principal amount you've paid off on your home loan.
To calculate, equity is the difference between the value of your home and the amount you owe on it. For example, if your home is worth $900,000 and you owe $500,000, your equity is $400,000. As you pay off your home loan (if you’re paying principal and interest repayments), your equity increases. You can borrow against the equity in your home to buy an investment property.
We may ask you to estimate the value of your property. This information may be available to you through council rates or based on previous valuations.
The costs associated with the structure of the loan. We don’t charge our customers any upfront fees to apply and take out a Tic:Toc home loan. Our CO:Lab partners may have some fees associated with their home loans – because while we speed up the assessment and approval process, it will be their home loan you’re getting.
Financial assistance for first home buyers, offered by State Governments. The monetary amount and the conditions vary by state. So we can process applications quickly, we don’t accept first home owners grants.
An interest rate that is locked in for a specified period, often a number of years, regardless of changes to interest rates. This means your loan repayments also remain the same over the fixed period of time.
A fixed-rate home loan can provide peace of mind - but it's not always the cheapest option.
By choosing this product you are ensuring the certainty of repayments over the period you have selected. You will also protect yourself from any increases in interest rate. However, you won’t receive the benefits of potential savings associated with a decrease. And you will only be able to make limited additional repayments to reduce your loan balance. At the end of the home loan fixed rate period you will need to be prepared for the possibility of an interest rate adjustment.
You own the building and the land it stands on.
When you make an offer on a property but a different buyer then makes a higher offer, which the seller accepts, you’ve been gazumped. Fun to say, but not that fun when it happens to you.
Extra charges by the government when a property is purchased or refinanced. Stamp duty is the biggie, but also registration and transfer fees.
A person who agrees to meet the home loan repayments for you if you’re unable to. This is most common with first-time buyers, and the guarantor is usually their parent or guardian. We don’t do guarantor loans at Tic:Toc.
A reciprocal relationship with our customers, to lend you the money to buy or refinance a home. We have a document as security for this agreement and to confirm the total amount you have borrowed from Tic:Toc. To make it legit.
Upon the purchase date, you need to get building insurance on your new home. This is to give the lender some protection (as well as you!) if something happens to your property, such as a fire. You'll need to provide details of the insurance policy before the loan is finalised.
This is a summation of all the people that come and go in your current household as part of everyday life.
To purchase a home in Australia you must be able to provide at least one form of valid government identification, such as a driver’s license, passport or Medicare card. If we’re unable to identify you, we won’t able to proceed with your application. Because we need to prove you’re you.
The amount charged for the money borrowed from a lender. Also the thing you feel towards Chris Hemsworth and/or Beyonce.
A way of making payments on your loan. This is where you hold off the repayment of your borrowed amount (the principal) for an agreed period of time, and only pay off the interest charges. Most interest-only home loans revert to a principal and interest loan after a set initial period.
Interest-only home loans are more widely used by investors, who are attracted by the tax saving aspects, and are usually not likely to hold the property for the term of the home loan. For owner occupiers who are more focused on building equity in their property, it’s good to be aware that the underlying home loan debt is not reduced with interest-only.
The lender is the Big Guy who is funding your loan (and holds the loan document as security). For our Tic:Toc home loans, your lender is Bendigo and Adelaide Bank. For our CO:Lab home loans, your lender is La Trobe Financial.
Insurance which protects the lender in case you can't make your repayments. It's generally only applicable when your borrowing amount is greater than 80% of the property's value. Although an additional cost to the lending process, it can be a great mechanism to get purchasers into a home quickly without having to save the 20% deposit. Thanks to LMI, Tic:Toc are able to lend you up to 90% of your property's value!
We will formalise our offer to you in an e-letter, because who needs paper? Once you get your approval email, you'll know exactly how you can proceed with the purchase of your home.
A term used to refer to the debt you are responsible for and need to repay.
An amount of credit extended to a borrower. It’s usually held in a transaction (everyday savings) account with a credit limit.
The mutual contract between you and your lender, which sets out the terms and conditions of your loan.
The start of a home loan application and approval process. Your loan origination with Tic:Toc occurs right here, online. Because who needs a broker, anyway.
The fee to prepare loan documentation when you go through settlement. Tic:Toc absorbs this cost for you, because our robot does all of the work (he doesn’t know about the Fair Work Ombudsman yet, so let’s keep it that way).
A type of financial calculation. Your loan amount divided by the value of the property. If your property valuation is $800,000 and your loan is $600,000, then the LVR is 600,000/800,000 = 75%. The most we can lend to you is 80% of the value of the property (or 90% with LMI). In other words, you must have a 20% deposit. Plus, you need to have sufficient finances for all fees including stamp duty.
When you feel like paying a bit extra off your total borrowed amount. It’s an unscheduled extra repayment made to your loan (e.g. tax return, cash from grandma, winnings from footy club competition etc.)
This is the maximum amount Tic:Toc will lend to you, based on your circumstances and ability to repay the loan. In all instances you will need to be able to pay your deposit, stamp duty and any fees in addition to the loan.
A word so outdated we don’t utter it. It’s to Tic:Toc what Voldemort is to Harry Potter – “He who must not be named”. Did you know the word 'm_______' literally means 'death pledge'? We don’t like to think of buying a house like that, and nor should you.
A person you’ll never have to deal with when you buy or refinance your home with a Tic:Toc loan. A mortgage broker offers clients a number of loan options, and act as a middle man between you and the lender. Be aware that brokers can only offer loans that they are accredited to write, and some brokers will get paid more commission for recommending certain deals than others. Some of the best deals are only available if you apply directly. And we all learnt from Chinese Whispers that when there’s a middle man involved, some things are bound to get lost in translation.
Our role is to use our robot to asses our customers’ suitably for the Tic:Toc loan. We’re also transparent with our upfront fees. Because we don’t have any.
An everyday transaction or deposit account, that allows you to use your savings and income to reduce the amount of interest you pay on your home loan. It reduces, or ‘offsets’, the total loan amount. This works by using the interest that you would usually build up on your savings to instead be deducted from the amount of interest you owe on your loan.
How does it work? If your loan is $300,000 and you have $10,000 in your transaction account, then interest for that month is calculated on $290,000.
An indication of how much you can borrow (based on the information you've given us) without having final approval for a specific amount of money we can lend you.
Any extra home loan payments you make on top of your scheduled repayments.
The total amount of money that is borrowed. The principal will reduce over time as you make regular repayments on a principal and interest loan. Interest is only ever calculated on the principal balance, so it should also reduce over time and as fast as possible.
A loan repayment structure in which you repay the interest as well as chipping away at the principal as well.
Erased, finoto, goneski. There is nothing left.
A loan feature that lets you withdraw any extra repayments (on top of your required amount) you may have made.
If, during the process of your Tic:Toc application, your loan gets referred, this means one of the Tic:Toc home loan navigators is personally going to review your application.
To switch lenders and arrange a new loan for the same property, normally to find a better deal. Which is probably why you ended up here.
The registration of transfer of land fee varies by State. For example, in NSW it’s $209, and in SA it’s a percentage of the value of the property.
The amount you have agreed to pay off during a regular period of time (weekly, fortnightly or monthly). To reduce the amount of money you ultimately repay, it is better to pay more frequently, because you’ll squeeze in extra repayments over the loan term.
A machine capable of carrying out a complex series of actions automatically. Tic:Toc’s bot is so clever, it will instantaneously select a home loan tailored to your needs, and will help you on your way to approval in 22 minutes flat.
The amount you have set aside ‘for a rainy day’. Lenders like this as a demonstration of your financial discipline and ability to invest. Your daughter likes this as a redraw facility.
An asset (a property, a term deposit, a treasure chest of gold) that you pledge to forfeit in the instance your loan can’t be paid (it defaults).
The final step in the securement of a loan and/or property. The seller receives their final payment for the property. The buyer receives the keys and becomes the legal owner of the property. Yeehaa.
A loan structure where you pay a fixed interest rate for a portion of your loan and a variable rate on the rest. Tic:Toc doesn’t offer this just yet. But we’re working on it.
A State Government tax based on the purchase price of the property. Each state and territory has different rules and calculations; and it’s unavoidable. Bah humbug.
The most common title associated with townhouses and home units. It acts as evidence of a unit’s ownership. In a strata plan, individuals each own a small portion of a strata building such as a unit, which is identified as 'lot' on the title. All owners in a strata plan share common property such as external walls, windows, roof, driveways, foyers, fences, lawns and gardens.
How long a loan lasts for. The Tic:Toc term is 30 years for principal and interest home loans and 25 years for interest only home loans.
In the old days, the bank would call your employer and check you work where you say you do. As an alternative to getting instant online validation and letting the Tic:Toc robot go to work, you can upload documents to the Tic:Toc online application form. This will preclude you from an instant answer and, as such, one of our Tic:Toc humans will need to check your details (just like in the good-old-days).
If you agree to offer your personal details as part of your application, the Tic:Toc robot goes to work and checks your data. This happens instantly and securely. You need to provide your online banking login details into the system, after which they get deleted immediately. Obliterated. Destroyed. Exterminated. And we get a read-only copy of your transaction and loan statements, just like if you had submitted manually. But faster.
An interest rate that changes between payment periods – it can move up or down based on economic factors or changes in the property market.