| Please find below the glossary for some commonly used
mortgage terms [in alphabetical order]. |
| A | B
| C | D | E
| F | H | I
| J | L | M
| O | P | R
| S | T | U
| V |
Alliances
Relationships or tie-ups formed between two or more organizations
to provide benefits to their customers.
Ancillaries
Extras or peripherals relating to a product or service.
Application Status
The stage that an application has reached in the financing
process.
Approved Builders
A list of certain builders / developers whose properties
and projects are approved for financing.
Asset
A thing of value belonging to a person or organization
which may be used for the payment of debts. |
|
|
Benefits
Facilities or value-additions provided to customers.
Board of Directors
A committee of individuals who are in charge of the company's
overall policies. |
Commitment
An agreement or promise, often in writing, between
a lender and a borrower to provide financing at
a future date, subject to the completion of paperwork
or compliance with stated conditions.
Construction Finance
Financing, to pay for the construction of buildings
or homes. These are usually designed to provide
periodic payments to the builder as construction
progresses.
|
Contract
A legally binding document that states and explains
a formal agreement between two entities, usually
a buyer and seller, outlining the terms and conditions
agreed upon between the two parties.
Customer
A person who is being provided products and services
by the company.
Customized
Tailor-made or made to order according to the
buyer's / user's needs.
|
|
|
|
Deferred Payment
A payment that not made immediately.
Disbursal
Actual pay-out of the financing amount to the customer.
Disposable Income
That portion of a person's income that is available for
use after payment of taxes, food and basics, and other
financial obligations.
Down Payment
An amount of money that is paid at the time of purchase,
but which is a part of the total cost. The remaining amount
is usually paid over a period of time. |
|
|
EIBOR (Emirates
Interbank Offer Rate)
The rate that the most creditworthy banks in the Emirates
charge each other for financing. It is usually the base
rate used by companies as a benchmark for calculating
their profit rate.
Eligibility
Having the necessary qualities or fulfilling the necessary
conditions.
Equated Monthly Installment
Monthly installments that are of equal amounts, i.e. the
amount to be paid each month will remain the same.
Equity
The value of a property after any mortgage or other charges
relating to it have been paid in full. |
Facility Offer
Letter
A letter given to the buyer, by the company, as
an offer for financing of property.
Finance Options
Types of product options or financing provided by
the finance company.
Fixed Rate
A profit rate that is fixed for the full length
of the financing term.
Financed Amount
A sum of money that is provided to the customer,
by the finance company, for the purchase of the
property.
Financier
An individual or company that provides financing
to another entity. |
Financing Calculator
A calculator that calculates approximate monthly
installment repayments.
Financing Repayments
Installments that are repaid to the financier periodically.
Flexible / Floating Rate
A profit rate that changes periodically throughout
the financing term. The profit rate is a fixed percentage
linked to a base index which changes periodically.
|
|
|
|
Home Financing
Financing that is provided for the purpose of purchasing
property, and is repaid in installments. |
Islamic Financing
Techniques
Islam outlines certain principles based on which financial
transactions are carried out. These are in compliance
with the Sharia'a. |
Joint Borrowers
Two borrowers who jointly avail financing, where the financing
contract would usually be in the names of both individuals.
|
Lease Period
The time period during which the lease has to be repaid
in full.
Lessee
The individual or recipient who is availing the lease
and is under obligation to make the lease repayments.
|
|
|
Maturity of Financing
The end of the financing term, when the financing has
been repaid in full.
Monthly Obligations
Expenses that are due to be paid each month.
Mortgage
An agreement that allows an individual to borrow money
from a bank or similar organization, especially in order
to buy property.
Mortgage Advisors
Representatives who can advise customers about their financing
needs and help them apply for financing.
Mortgage Charges
Charges that are required by the Dubai Land Department.
|
Operating Lease
It is a rental agreement where there are no risks associated
with ownership and no residual value liability.
Outstanding Balance
The balance amount that still remains to be paid. |
|
|
|
Periodic Repayments
Repayments that are made periodically e.g. monthly,
quarterly, annually, etc.
Post-dated Cheques
Cheques that are dated for a later date in the
future.
Principal
The financing amount, excluding the profit portion.
|
Processing, Arrangement and Management Fees
A flat, one-time fee that is charged in respect
of managing the entire financing process.
Profit
The extra amount charged by a seller to a buyer
for the service or facility offered to the buyer.
Profit Rate
The percentage that is applied to the financing
amount to arrive at the profit.
|
|
Registration Fee
The fee charged by the Dubai Land Department upon purchase
of property. |
Sharia'a-compliant
Products or services that are structured along the lines
of Islamic financing concepts. They conform to the guidelines
issue by the Shari'a board for the financing of products
and services. |
Title Papers
Documents that relate to property that is in the name
of a particular individual. |
|
|
Unconditional Offer
An offer that is not restricted by any terms and conditions.
|
Vendor
An individual or organization providing products or services
to another organization. |
|
|
| |
