The best credit rating that can be given to a borrower's debts, indicating that the risk of a borrower defaulting is minuscule.
The right of the lender to demand the immediate repayment of the mortgage loan balance upon the default of the borrower.
The guardian of a trust account who holds money or property in trust to secure performance obligations.
The interest that has accumulated on a financial instrument (such as a bond or loan) since the last interest payment.
Also known as a roll-up fund, these are funds where all income is automatically reinvested (rather than distributed to shareholders). This is tax efficient for those investors who wish to minimize investment income and cash in their wealth at a more tax-advantageous moment.
Adjustable Rate Mortgage (ARM) A type of mortgage in which the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is normally fixed for a period of time after which it is reset periodically, often every month. The interest rate paid by the borrower will be based on a benchmark plus an additional spread, called an ARM margin. An adjustable rate mortgage is also known as a "variable-rate mortgage" or a "floating-rate mortgage".
A term used to describe someone with a history of poor credit transactions. Also referred to as Impaired Credit.
Advised Market Value, in relation to property valued for sale by a licensee (estate agent), means the licensee's reasonable estimate, at the time of such a valuation is of the amount that would be paid by a willing buyer in an arm's length transaction after proper marketing where both parties act knowledgeably, prudently and without compulsion.
A document in which the purchaser agrees to buy a certain property and the seller agrees to sell under stated terms and conditions. Also called sales contract, binder or earnest money contract.
An entity established by the UAE Central Bank to regulate the banking market by tracking and providing information to banks on consumers' existing loans and debt.
This refers to a gradual debt reduction. Typically, the reduction is made according to a pre-determined schedule for installment payments.
When referring to credit, the minimum monthly payment made, not the total amount owed.
The AER is the interest on a savings account if it is compounded and paid out each year instead of monthly, or over any other period. One may earn less than the AER because the money may not be invested for a year. Some firms use Compound Annual Rate (CAR), instead of AER, on savings and investment products.
An annual charge by the credit card issuer. Most credit cards these days do not charge an annual fee. However, some exclusive top end cards still do. These tend to be offered only to those with very high incomes.
The APR is the annual rate of interest charged on a loan, including a mortgage. It takes into account all the costs involved over the term of the loan, such as any set-up charges and the interest rate. APR is used to compare costs between different loans if compared over the same term; for example, the APR of different loans with terms of three years can be validly compared.
The true or effective rate of interest when compounding is taken into effect.
A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.
An estimate of the price achievable for a property for marketing purposes. It is not a valuation.
An opinion of a property's fair market value, based on an appraiser's inspection and an analysis of the property.
A person qualified by education, training and experience to estimate the value of real property.
An increase in the value of an asset such as property, gold or investments.
An increase in the value of the property (the opposite of depreciation).
This is the first document one receives from a mortgage lender and it outlines how much one can borrow.
A non-refundable deposit made by a buyer to a seller to buy an asset that will be delivered at a later date. It is comparable to a call option.
A fee sometimes charged by a lender on the drawdown of a loan.
This is the total of late or overdue payments for a mortgage or any other regular payment.
The initial starting price at which a seller is looking to sell their property.
Something that provides income or some other value to its owner. Fixed assets (also known as long-term assets) have a useful life of more than one year, for example buildings and machinery. There are also intangible fixed assets, like the good reputation of a company or brand. Current assets can easily be turned into cash and are expected to be sold or used up in the near future.
The agreement between the buyer and the seller where the buyer takes over the payments on an existing mortgage from the seller.
The procedure by which an asset is purchased through competitive bidding on the open market. Remember that, if one bids at an auction and is successful, he or she is legally bound to buy the asset.
Sometimes called Cash Machines, these are electronic terminals located on bank premises or public places through which customers can make deposits, withdrawals, or other transactions as they would through a bank teller. The service charges may vary if using an ATM in a different country or that of a different bank.
Authorized deductions from a depositor’s checking account, such as for insurance premiums, safe deposit box fees, or other, usually recurring, payments.
The unused portion of the credit amount for which one is eligible.
A method of computing finance charges in which creditors add balances for each day in a billing period, and then divide by the number of days in the period (365 days).