12 terms starting with N
The NCCP Act is Australia's National Consumer Credit Protection Act 2009, the law that licenses credit providers and brokers and sets responsible lending and disclosure rules for consumer credit.
Read definitionNear-prime is the credit-risk band between prime and sub-prime: borrowers whose credit history is mostly positive but carries one or two risk flags that lead lenders to add conditions.
Read definitionNegative gearing is when an investment bought with borrowed money costs more to hold than it earns, and the shortfall is deducted against your other income.
Read definitionA negative pledge is a promise in a loan contract not to give any other lender security over your assets without the first lender's consent.
Read definitionA nominal rate is the headline annual interest rate a lender quotes before compounding within the year is taken into account, unlike the effective annual rate.
Read definitionA non-performing loan (NPL) is a loan where the borrower is not meeting payments and the lender judges full repayment doubtful, commonly once payments are 90 days past due.
Read definitionNon-permanent resident borrowing is lending to people on temporary Australian visas, where the home loan, car or business finance is assessed against visa term and work rights.
Read definitionNon-recourse funding is finance where the lender's recovery on default is limited to the secured asset or project and its cash flows, not the borrower's wider assets.
Read definitionA non-resident home loan is an Australian mortgage for a borrower living overseas, whether an expat, a temporary visa holder abroad or a foreign national.
Read definitionNot-for-profit finance is the set of practices, policies and controls a charity or community organisation uses to raise and manage money, reinvesting any surplus in its mission.
Read definitionA novated lease is a three-way car lease where your employer takes over the lease payments and deducts them from your salary, mostly before tax, while you work there.
Read definitionNovation is a three-party agreement that replaces one party to a contract with another, releasing the outgoing party and passing its rights and obligations to the incoming party.
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