Glossary | Funding

GLOSSARY

Glossary

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There are 5 Terms in this directory beginning with the letter F.
Fair Market Value
Fair Market Value is an estimate of the market value of a property based on what a knowledgeable, willing buyer would pay to a knowledgeable and willing seller.

FinTech
FinTech (short for Financial Technology) is the term given to the industry made up of financial companies that employ the use of technological advancements to enhance or streamline the consumer experience and disrupt the processes of incumbent financial institutions.

First Lien/Charge
A Lien is the legal right of a lender to repossess collateral if a borrower is unable to fulfil their obligations. Thus, the first lien gives the lender the highest priority over the collateral.

Fix and Flip
Fix and Flip is a relatively new term used to describe the concept of renovating a property before selling it. This is done in hope that it will add value to the property. This is not practiced often in Australia as tax obligations are usually cost prohibitive for quick turnaround of property transactions.

Foreclosure
Foreclosure is the legal process a lender goes through if they need to recover funds from a borrower who has not paid their loan. In the case of property, the lender would sell the property which was used as collateral for the loan. This is typically at auction via a licenced independent real estate agent.