| Land Contract |
When the buyer agrees to make payments directly to the seller at pre-negotiated terms. The seller agrees to deed the property to the buyer upon completion of the agreement. The buyer becomes the owner of equity in this type of sale (see also Owner Financing). |
| Lender |
The body making funds available for the purpose of lending. |
| Lenders Mortgage Insurance |
An insurance that covers the lender should there be a shortfall in the payout figure if a property is sold to recover debts outstanding. This is usually required by lenders for loan amounts over 80% LVR. |
| Lien |
A legal claim on a property used as security for a debt. |
| Liabilities |
What you owe. |
| Loan Application Form |
Form used to gather all necessary information from a prospective borrower. |
| Loan to Value Ratio (LVR) |
The ratio of the amount of the loan against the value of the property, shown as a percentage. |
| Low Doc |
A lending product offered by some institutions where there is a lesser requirement to clearly establish debt servicing capacity. |
