Skip to main content

Dashboard

Courses

All Courses

Lessons

All Lessons

Tools & Calculators

Purchase Costs
Stamp Duty
Borrowing Power
All Tools & Calculators

Community

Forum

Sign in for personalised lessons

How to Property is in Early Release. Full release 14 May 2026. Provide feedback and contact for partnerships.Contact Us

C

32

Capital improved valueThe total market value of a property including both the land and all buildings or improvements on it. Used by Victorian councils to calculate rates.
Capital improved value (CIV)The total market value of a property including both the land and all buildings or improvements on it. Used by Victorian councils to calculate rates.
Capital works fundA reserve fund built up through levies to pay for major repairs and replacements to common property, such as roof replacement, repainting, or lift upgrades. Previously called the sinking fund.
CapitalisationAdding a cost such as an LMI premium to your loan balance instead of paying it upfront. You then pay interest on that amount for the remaining life of the loan, increasing its true cost over time.
Cash BufferSavings held in reserve after purchasing a property to cover unexpected expenses, rate rises, or income disruption. A common benchmark is 3 to 6 months of mortgage repayments.
CatastrophisingA thinking pattern where a single negative event is interpreted as evidence of a permanent, hopeless situation. In property, turning one missed bid into the belief you will never buy.
Caveat EmptorA Latin phrase meaning 'let the buyer beware.' In Australian property law, it places the responsibility on the buyer to investigate the physical condition of a property before purchase. Sellers generally have no obligation to disclose physical defects, though they must not actively conceal them or make misleading statements.
Certificate of currencyA document from your insurer proving you have an active insurance policy. Your lender will require this before settlement to confirm the property is insured.
ClawbackA provision where the lender reclaims some or all of the upfront commission paid to the mortgage broker if the borrower pays off or refinances the loan within a set period, typically 1 to 2 years after settlement. Federal regulations cap the maximum clawback period at 2 years and prohibit brokers from passing clawback costs to borrowers.
Clearance rateThe percentage of properties listed for auction that successfully sell, either at auction or shortly after. A clearance rate of 70% means 30% of auctioned properties did not sell.
Cognitive BiasA systematic pattern of deviation from rational judgement, where your brain takes mental shortcuts that can lead to errors in decision-making. Anchoring is one of many cognitive biases identified by behavioural psychology research.
Common propertyThe parts of a strata scheme shared by all owners, including lobbies, stairwells, driveways, gardens, pools, lifts, roofing, and external walls. Maintained and insured through strata levies.
COMOCompromise Or Miss Out. A term coined in 2025 describing the trend of Australian buyers adjusting their property requirements downward due to high prices and limited supply.
Comparable salesRecent sale prices of similar properties in the same area, used as evidence to estimate a property's market value. Also called 'comps.' These form the basis of independent property valuations.
Comparative market analysisA method of estimating a property's value by comparing it to similar properties that have recently sold nearby. Real estate agents and valuers both use this approach, though agents may present it selectively to support a desired price outcome.
Comparison RateA single percentage figure that combines a loan's interest rate with most of its standard fees and charges, calculated on a $150,000 loan over 25 years. Required by law to be displayed alongside any advertised home loan interest rate in Australia. It includes application fees, ongoing fees, and settlement costs, but excludes government charges, lenders mortgage insurance, and conditional fees like early repayment penalties.
Competitive arousalA physiological and emotional state of heightened alertness triggered by direct competition, characterised by increased heart rate, sweating, and impaired analytical decision-making.
ConcessionA reduced rate of stamp duty. You still pay some duty, but less than the standard amount. Concessions are often available for first home buyers within certain property value ranges.
Concessional ContributionsBefore-tax super contributions including employer contributions, salary sacrifice, and personal contributions you claim a tax deduction for. These are taxed at 15% inside super. The total annual cap for all concessional contributions is $30,000 in the 2025-26 financial year.
Conditional ApprovalA lender's written indication that a borrower meets their lending criteria based on the information provided, subject to specific conditions being met before the loan is finalised. Also called approval in principle. It is not a guarantee of funding.
Conditional OfferAn offer to purchase a property that is subject to specified conditions being met — most commonly finance approval, a satisfactory building and pest inspection, or the sale of the buyer's existing property. If a condition is not met, the buyer can typically exit the contract without penalty.
Conflict Priority RuleA component of the mortgage broker best interests duty that requires brokers to prioritise the consumer's interests when a conflict of interest arises. A broker cannot recommend a product that would generate higher remuneration for themselves unless doing so is also in the client's best interests.
Conflicted RemunerationPayment structures where the professional's income depends on recommending a particular product or service, creating an incentive that may not align with the client's best interests. Examples include volume-based bonuses, trailing commissions tied to loan size, and referral fees from developers.
Contents insuranceInsurance that covers your personal belongings inside the home — furniture, electronics, clothing, appliances — against theft, damage, or destruction.
Contract of SaleThe legal agreement between buyer and seller that sets out the terms of a property transaction, including the price, deposit, settlement date, and any conditions that must be met before the sale is final.
ConveyancerA licensed professional who specialises in the legal process of transferring property ownership. They are qualified to handle standard residential transactions but cannot provide broader legal advice outside property law.
ConveyancingThe legal process of transferring property ownership from seller to buyer, handled by a conveyancer or solicitor. It includes contract review, property searches, settlement arrangements, and title registration.
Cooling-off periodA short window (typically 2-5 business days, varying by state) after signing a contract during which a buyer can withdraw from the purchase, usually with a small penalty. There is no cooling-off period for properties bought at auction.
Cost MapA full inventory of every upfront, transaction, and ongoing cost a property purchase will expose you to. If it is not on your cost map, it will hit your budget as a surprise.
Council ratesA compulsory annual charge set by your local council, based on your property’s assessed value. They fund local infrastructure and services like roads, waste collection, parks, and libraries.
Credit GuideA document that mortgage brokers are legally required to provide to borrowers before giving credit assistance. It discloses the broker's commission structure, the lenders on their panel, their complaints handling process, and their Australian Credit Licence details.
Criteria driftThe gradual, often unconscious relaxation of property standards over time during a search. For example, a budget ceiling of $850,000 slowly becoming $900,000 after repeated missed opportunities.

Free property education for Australians.
From first steps to settlement.

© 2026 How to Property.
All rights reserved.

Browse

Courses
Tools & Calculators
Definitions
Resources

Company

About
Contributors
Terms of Use

Media

Blog
Updates

Stay in the loop

New courses and guides — no spam, unsubscribe any time.