Builders use words like 'conveyance' and 'dry ridging' every day, but to everyone else they might as well be speaking another language. Communicating smoothly with your builder makes for a better building experience so we’ve put together this glossary to help with that. 


The specifics of the product and inclusions in your home, including product selections and colour selections chosen at Prestart.
Additional Payments
These are the extra funds paid into the loan over and above the minimum term.
The repayment of a mortgage loan by instalments with regular payments to cover the principal and interest. Payments are calculated to pay off your debt by a specific date. Amortisation affects housing expense budgets more than anything else, so it pays to make certain your payments are calculated correctly and your payment obligations can be met.
Amortisation term
The amount of time required to amortise the mortgage loan. The amortisation term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortisation term is 360 months.
Annual Fee
Ongoing administration fee charges each year on many home, business, personal and reverse mortgage loans, as well as credit cards. Admin fees such as these on home and personal loans can also be charged monthly, quarterly or half yearly.
An increase in the value of a property due to changes in market conditions or other causes.
Orange/red internal brick used on the interior walls in your home
The amount overdue on the account.
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds and so on).


Balance Sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.
A person, firm or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.
Sloping board fixed to the edge of a gable
Before-tax Income
Income before taxes are deducted.
Blue Pine
Timber that has been treated for the European House Borer and is either green or blue in colour
Boundary Wall
A wall to the garage which is built one brick course higher than the external walls. Boundary walls are required when a wall is built within 900mm of the boundary.
Break Costs
Relates to the economic costs and fees charged when a borrower terminates a fixed-rate loan contract before the expiry or the fixed-rate period.
Building Permit
A building permit is a compulsory requirement by the State Government that provides permission by a local council to construct a new home.
Dropped section of ceiling


Capital gain
The amount by which a property has increased in value since it was bought.
Cash-out refinance
A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens. In other words, a refinance transaction in which the borrower received additional cash that can be used for any purpose.
Cavity Closer
A cavity closer is an attached pier that covers the end of the cavity where it runs into the garage. The pier allows us to flash the edge of the cavity wall section where it meets the single wall section to maintain a weatherproof area to the home. It will be marked on your floor plan as WPM.
Cavity Insulation
like roof insulation this product increases the thermal mass of the wall providing better storage and reflection of heat making the home more energy efficient. This product generally comes in one of three forms : batts, blow in expansion foam or a thin sheet with reflective backing.
Ceiling Fixers
The tradespeople who install your ceilings.
Certificate of Design Compliance (CDC)
Approved certification of your plans by qualified Building Surveyors stating that the plans comply with the Building Code of Australia and Australian Standards.
Certificate of Title
A document showing a home’s land dimensions and ownership details, as well as any encumbrances.
A person who is jointly and equally liable for repayment of the mortgage obligation. A co-borrower completes an application and submits all documentation and may or may not be on the security instrument.
Coastal Zone
an area of land that exists within 1km of breaking surf or 100m of standing salt water. This area is at a high risk of erosion and corrosive effects of sea spray that can lead to deterioration of standard steel products. This is countered by the use of upgraded products that protect against these conditions on homes.
An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract. In the case of home loans, collateral is a piece of real property (land and/or a building). Borrowers are bound to repay loans (plus interest) to their lender(s). If they fail to do so – or default – the lender can take possession of, or foreclose on, the collateral.
Conditional approval
Conditional loan approval is based on information provided as set forth on the application. The conditional approval is subject to the verification and / or receipt of additional information. Once all closing conditions and lender requirements are satisfied, the loan will receive final approval.
Piping used in walls in which electrical wire is installed.
Construction Coordinator
Our customer service representative and primary point of contact for all clients from your Prestart meeting, through construction to key handover. Your Construction Coordinator will liaise regularly with your Site Manager to provide clients timely updates on the construction stages and progress of your home.
Contour Survey
Survey conducted on site by Cottage and Engineering Surveys that provides a surveyed plan showing the levels of your lot including any existing retaining walls and neighbouring structures.
Contract Documents
Your Variations, Final Addenda and Final Drawings
Contrast Render
Cement surface applied to external brickwork – in a different colour to the main external render
The legal process for the transfer of real estate.
Corner Beads
Metal beads applied to the edges of brickwork by the plasterer to prevent damage to corners
Angled plasterboard that seals the gap between your roof and walls
Cornice Cracking
Cracks to the angled plaster board that seals the gap between your roof and walls and is a natural part of the settling in period and ongoing home owner maintenance of your Celebration home.
Cottage Design
Refers to a narrow style home design to suit cottage style lots in new land estates. Entry can either be from the front of the rear of the home and is an excellent low maintenance option best suited to first homebuyers, investors or people looking to downsize.
Credit limit
The maximum amount the borrower can use at any one time.
The section of driveway between your lot boundary and the road.
A construction term used to describe drying out and strengthening of a product. E.g. slab cure


Daily interest
Calculated on the loan balance on a daily basis.
Debt-to-income ratio
The ratio of the borrower’s total monthly obligations, including housing expenses and recurring debts, to monthly income. It’s used to determine your capacity to repay the mortgage and all other debts. Your debt-to-income ratio is a crucial calculation in determining the loan amount for which you can qualify. It represents your qualifying ratio – that is, your financial capacity to assume and repay debt.
Deposit (on home loan)
With a standard home loan, the most you can borrow is 95% of the value of the property. You have to come up with the rest yourself before you apply for the loan, preferably from genuine savings.
Deposit (on house)
When you buy a home, you have to pay a deposit to the seller, to show you’re serious about purchasing the home.
A decline in the value of property.
Design Guidelines
Design guidelines specific to land estates that cover items that aren’t addressed in the Residential Design Codes (R-Codes), or other planning policies. For example, a Land Developer may want all dwellings in a new estate to painted from a certain colour palette, or for all dwellings to have an entry feature such as a portico or verandah. Design guidelines tend to affect the overall appearance, or ‘feel’, of an area, and are generally used to make sure that all homes meet certain minimum design standards.
Detailed Area Plan (DAP)
Detailed Area Plans (DAP’s) are planning tools used by land developers to provide better design control measures than those under Residential Design Codes (R-Codes) for matters relating to design and the overall look of the built area. DAPs will often vary, reflecting the differences in areas and scenarios that may arise such as streetscape, garage location, solar orientation, passive surveillance, noise, access to primary roads, landscape, the pedestrian network, building height and topography. DAPs also help ensure there is consistency in what is permitted across different lots in an estate. DAPs are normally prepared as a condition of subdivision by a land developer who must ensure that purchasers are given a copy of the approved DAP prior to sale.
Metal pipes connecting to your gutters that carry water into a drain
Access available to specific loan funds such as a line of credit where a credit limit is set.
Dry Ridging
Fitting the ridge tiles without cement bedding due to weather conditions.


Are a component of site works and relate to the preparation of the land for the slab to be laid. This can involve delivery extra or removal of excess sand, clay or debris, and layering and compaction of sand to achieve a finished ground level on which the slab will be laid to the required finished floor level for your home.
Edge of the roof overhanging from the external house wall
Electrical Plan
A plan completed by the Drafting department showing the locations of all electrical items in your home. Including light points, power points, light switches etc.
Electrical run-in
The connection of your electrical wiring from the power dome to your meter box.
A façade of a home
Energy Assessment
Report provided by qualified energy assessors that confirms compliance with the energy section of the Building Code of Australia.
Engineers Detail
Drawings detailing all structural components of your home. Including, but not limited to, tie-down details, beam sizes, column sizing, etc.
Engineers Report
Document provided by our Engineers that specifies the wind zone and soil conditions of your lot and also provides typical slab and footing details.
Equity (home equity)
The difference between what you owe on your home, and what your home is currently worth.
European House Borer (EHB)
European House Borer (EHB) is a serious pest of untreated dry softwood, including pinewood. Without appropriate action, EHB has the potential to infest homes built with untreated pinewood structural timber. Source:


Face brick
Brickwork on your home that doesn't get rendered.
A board or other flat piece of material covering the ends of rafters or other fittings.
Final Drawing
See Final Plans
Final Plans
Once your Prestart changes have been completed your plans are changed to Final Plans. The plans are now ready to be sent to site to construct your home.
An ornamental feature at the top of a gable
Finished floor level (FFL)
The finished level of your slab. This is determined by the ground level around your lot and possibly any existing retaining walls on site.
Items that can be removed from a property without causing damage. Generally not fixed.
Items fixed to the property and can only be removed only if stipulated in the contract of sale.
Ventilation from the inside to outside of home. E.g. rangehood and exhaust fans
Narrow section of concrete around your slab that supports it and the face brickwork.
Footings Detail
this refers to the thickness and width of the concrete footings and slab that make up the foundation of the home and also specifies any steel reinforcement that may be required. The footing detail is determined from the Site Classification
Formal Finance
When a bank/lender formally approves your loan application and offers you unconditional loan approval
Absolute and indefinite ownership of land. Buildings and fixtures on the land generally belong to the owner of the land.
Absolute and indefinite ownership of land. Buildings and fixtures on the land generally belong to the owner of the land.
The width of your block of land as seen from the street. A blocks frontage will determine the width and design of a new home and what will best compliment it.


Roof feature (pitch roof ending in a triangle)
Gift funds
Funds donated on behalf of the borrower from certain eligible sources to assist the borrower in meeting closing costs. Generally, eligible sources are relatives, churches, municipalities, or non-profit organisations.
The process of installing glass into windows.
General Power Outlet or power point
Concrete used in your garage hardstand
Grey internal float
The first layer applied to your internal walls in the plaster process.
Gross income
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
Gross income
The total amount a borrower earns prior to any deductions.
Construction material used to fill the gaps between tiles
A promise made as bound by the terms of a contact.
A party who agrees to be responsible for the payment of another party’s debts.
Metal channel set below a roof line that collects water runoff from a roof and connects with the downpipe


Hard Digging
The term given to describe digging of areas with hard rock or limestone that need to be removed before any slab, drainage or underground services can be laid. Generally found in the limestone areas north of Yanchep or in the foothill of the escarpment.
Flat fibre cement sheet for cladding/lining (e.g. eaves lining)
A window positioned at a high level.
HIA Building Contract
The legally binding contract between a homebuyer and a builder.
Tiled upstand to your shower
Holding deposit
A refundable sum of money and borrowed funds in an investment.
Home equity line of credit
A credit line that is secured by a second deed of trust on a house. Equity lines of credit are revolving accounts that work like a credit card, which can be paid down or charged up for the term of the loan. The minimum payment dye each month is interest only.
Home equity loan
A loan secured by a second deed of trust on a house, typically used as an investment or home improvement loan. A home equity account gives you a revolving line of credit secured by the value of your house. This allows you to use the funds for any other purpose such as the purchase of a second property, shares or other investments. The interest rate is generally higher than a standard variable rate, and these accounts are not suitable for everyone.
Home loan
Funds the home buyer has to borrow (usually from a bank or other financial institution) to purchase the property, generally secured by a registered mortgage to the bank over the property being purchased.
The person who buys a residential property; the purchaser.


product installed in homes (ceilings and walls) that acts as a barrier to heat loss and gain. Helps makes homes more energy efficient by keeping it warmer in Winter and cooler in Summer.
Charge for use of funds or the return on deposited funds.
Interest adjustment
Charge by the lender when additional payments are made for a fixed rate loan.
Interest-only loan option
Loan payments have two components, principal and interest. An interest-only loan has no principle component for a specified period of time. These loans minimise your monthly payments by eliminating the need to pay down your balance during the interest-only period.
Internal room layouts
Elevation drawings of your wet areas completed by the Drafting department. These show cabinet locations, tiling extents and locations of plumbing fixtures. The cabinet maker will use these to create your cabinets.
Investment property
A non-owner occupied residential property used to generate income.


Joint tenants
Equal holding of property between two or more persons with the right of survivorship.


Key Handover
Your home is complete, your final payment to Celebration Homes has been received and your keys are ready for collection.


Land tax
State /territory government charge on an investment property.
Land transfer registration
Registration of the ownership of a property to the buyer
Lender’s Mortgage Insurance (LMI)
If you want to borrow more than 80% of the property’s value, you have to pay mortgage insurance (LMI). Mortgage insurance is a one-off payment, usually made when you settle on the property. The amount you pay depends on the loan amount, the value of your property and how much of the purchase price you want to borrow (e.g. 95%). It protects the lender in the event that you can’t meet your repayments and the home is sold with the debt outstanding.
Lock Up
All the external windows are doors have been installed at your home and it is locked up.
Lock Up Meeting
Your Lock Up meeting will be your first opportunity to meet with your Site Manager at your home and view some of internal progress that has taken place since your home has been locked up and you no longer have internal access. At this time you will view your chosen kitchen and bathroom cabinetry and tiles onsite.
A real estate term used to describe a block of land.
Low doc home loan
A home loan that requires fewer official documents than a normal home loan, but often has a higher interest rate. Low doc home loans are usually for people who are self-employed.


Mortgage protection insurance
An insurance policy which will pay the monthly mortgage payment in the event of a covered disability or illness or redundancy of an insured borrower for a specified period of time.
The person or company who receives the mortgage as a pledge to repay.
The mortgage borrower who gives the mortgage as a pledge to repay.


National Broadband Network (NBN)
The National Broadband Network (NBN) is the new communications infrastructure being rolled out across Australia with the new fibre technology replacing the old copper wiring network. Your telephone and internet will run off this new connection providing a more reliable high-speed broadband connection as well as access to new entertainment and communication services that this technology will enable.
Negative gearing
Negative gearing happens when you have an investment (e.g. a rental), and the money you earn from that investment (e.g. rent) doesn’t cover the cost of keeping the investment (e.g. mortgage repayments, rates, maintenance, etc.). In other words, when you’re making a loss on an investment... at least until you sell. Come tax time, your income tax is calculated on your income minus your investment losses. So you may pay less tax.


Offer and acceptance of land (O&A)
Legal document used to finalise the purchase of land between a homebuyer and a land owner or Land Developer. Homebuyers will be required to have finance pre-approval and pay deposits for this transaction.
Official Cash Rate
The Official Cash Rate is the interest rate set by the Reserve Bank of Australia and used to influence the general level of interest rates in banking and the economy. Changes to the cash rate, also termed “official interest rates” flow on to variable home loan, personal loan and credit card rates within weeks.
Offset account / Mortgage offset
A transaction account, linked to your home loan, that you can deposit your surplus cash into. Any money in the deposit account reduces (or ‘offsets’) the loan principal, even if only temporarily. So while ever it’s there, you pay less interest. Your interest is calculated on the loan principal minus the balance in the account. For example, if the principal on your loan is $200,000 and you have $5,000 in the transaction account, your interest will be calculated only on $195,000 ($200,000 - $5,000). (Also known as a mortgage offset.)
Ongoing fee
A fee charged on a regular basis for the life of a loan to maintain the loan.
A pre-arranged limit to which borrower can exceed an account balance.


The slope of a roof. All Celebration Homes have a 25 degree roof pitch.
Wall/ceiling lining sheet with gypsum plaster core bonded to layers of paper
Plate high
Brickwork is completed and your home is ready for the construction of the roof frame to begin.
Practical Completion
Practical Completion is when your home is ready for your Pre-Handover (PHO) meeting with your Site Manager and is reached 10 working days prior to your Key Handover. It is when construction works are completed, except for any omissions or defects which do not prevent the works from being reasonably and capably used for its intended purpose.
When a lender advises you in writing how much they will lend you, subject to their terms and conditions.
The first stage of the building process which involves all the tasks that need to be completed before your home can start construction.
Pre-Handover Meeting
10 working days prior to your key handover your Site Manager will organise your Pre-Handover meeting to showcase your nearly completed home. Your Site Manager will walk your around your home, room by room, and demonstrate how to use and care for all the appliances and products in your home and what to do in the event something fails or stops working. For example how to use the kitchen appliances, operate your hot water unit, taps and shower heads.
A pipe laid in preparation for diversion or distribution of water.
Preliminary Works Contract (PWC)
Preliminary document signed by a homebuyer at the home purchase stage that sets out the agreement between the homebuyer and builder for the undertaking of certain works required (such as drafting of plans and ordering of site surveys) required for the preparation of a Lump Sum Building Contract.
The part of the building journey where you will meet with your Construction Coordinator to sign your contract documentation and finalise the colours and products to be included in your new home.
Product Selection Pack
Comprehensive selection booklet that you will use to select all the final products and colours for your new home in our Selection Room in preparation for your Prestart. This is provided to you by your Building Consultant when signing your Preliminary Works Contract. If you require one of these please phone us on 9202 2300.
Purchase Price
The price the home buyer pays to purchase the home.


Rate Lock
A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed within set period of time. The lock-in also usually specifies the number of points to be paid at closing.
Redraw Facility
A redraw facility allows you to make additional repayments on your mortgage, and then have access to the additional repayments if you need to. Conditions attached to the redraw facility that can include a minimum amount and a fee every time you use it.
Cement surface applied to external brickwork
Rental guarantee
Guarantee by the developer to a buyer as to the return on an investment property.
Repeg (Cadastral Surveys)
are required to establish the title boundary corners before construction commences on any lot. Re-pegs are often required when new boundary fences are to be erected and the existing marks/pegs are gone. The re-peg re-establishes these points and a Regulation 25A Resurvey Certificate is provided.
Residential Design Code (R-Code)
Document created by the Department of Planning and Western Australian Planning Commission. The code ensures compliance with setbacks, site coverage, building height etc.
The apex of your roof.
Roof Cover
Your chosen roof cover has been installed (pending weather conditions ridge capping may not have been installed).
Roof Frame
The wooden roof frame on which your roof cover will sit.


Sales Sketch
The preliminary floor plan sketch prepared by your Building Consultant prior to your home being drawn by the drafting department.
An asset that guarantees the lender their lend until the loan is repaid in full.
Self-Employed borrower
A borrower whose income is derived from a business source in which he or she has an ownership interest of 25 percent or more.
The distance from the lot boundary within which building is allowed. All blocks come with their own setback rules and conditions which determine where your house can be situated on a block of land. Setbacks are determined by the R-codes, developer's Detailed Area Plans and sometimes, local councils.
When your home loan is complete i.e. when the house legally becomes yours. Your lender makes final payments on your behalf, in exchange for the relevant documents of ownership.
Single Phase Power
Single Phase power (included in as standard in our homes) is sufficient to run ducted air-conditioning and any small machinery in your home.
Site Coverage
The minimum size requirement set by the Residential Design Codes (R-Codes). Local councils can also set Site Coverage variances. These can vary from suburb to suburb and different land estates and stages released by the same developer. e.g. Smaller blocks can require larger site coverage than larger blocks.
Site Manager
The Celebration Homes representative responsible for and overseeing the construction of your home, coordination of materials and labour, site safety and quality of your completed home.
Site Plan
Plan completed by the Drafting department that shows the location of your home on your lot. Plan also shows the FFL of the slab, setbacks from the boundaries and any proposed retaining.
Site Survey
See Contour Survey
Site works
The total scope of works associated to a lot of land to get it ready for construction. It can include a range of works such as earthworks, water main and sewer connections, electrical and telephone run in, soil classification and footing details, wind zone, stormwater requirements and more. Site works will vary from location to location and sometimes also for different pieces of land in the same suburb.
Smart wiring
A hardwired cabling connection to your home that allows networking of multiple internet connection points to run computers, smart TV’s, games consoles and other internet based devices. Smart wiring is installed in your Celebration Home by Intelligent Home and requires an individual consultation with your home plans prior to your Prestart meeting.
A below-ground lined well used to collect and discharge stormwater.
Soil classification
Perth has various different types of soil (sand, clay etc). Our engineers inspect your site and advise us on the soil type to ensure the correct footing and slab details are used when constructing your home.
Solar orientation
An important part of building design is the orientation of your home. With correct orientation we can aid in the heating and cooling of your home. In WA it is best practice to orientate your living areas to the North to ensure adequate sun into the home in the Winter and reduced sun in the Summer. Eaves also play a big factor in keeping your home comfortable through the different seasons.
This is typically known as a spandrel-end. It is where two roof lines meet due to different heights in brickwork / ceilings to a home. A spandrel is an aesthetically way to finish where the two corners meet on the roof line
Spoon drain
A moulded piece of plastic designed to be placed under downpipes to prevent soil erosion.
Stage/Progress payment
A payment made to the builder by the client (or clients lender) on completion of a specified stage of the building process.
Standard variable rate
The rate which lenders apply to their ‘premium’ home loan product. Carries features such as a redraw facility, portability, salary account, and mortgage offset.
Water runoff from a house roof.
The name of a Consulting Engineers business Celebration Homes utilises to determine site classifications, energy compliance,BAL (Bushfire Attack Level) assessments and structural certifications for the homes we build.
Structural Certification
See engineers detail
Switching Fee
A bank/ lender may impose a switching fee where an existing borrower wishes to change from one loan type to another e.g. variable rate loan to fixed rate loan.


Three Phase Power
Three Phase Power is a higher voltage connection to your home (approximately 400-415 Volts) This is required in homes where large electrical motors, heavy machinery, pools and a spa, would be used at the same time as one another.
Three Point Pack
The standard NBN (National Broadband Network) starter pack comes with a TV, data and coaxial connection point that comes with all Celebration Homes. It is the minimum requirement to connect to the NBN.
The evidence one has of right to possession of land. The Certificate of Title is the document conferring legal right of ownership to the property. One copy is usually held by the lender until the loan is repaid, and the duplicate is held at the Land Registry Office in the appropriate area.
Title Search
An investigation into the history of ownership of a property to check for liens, unpaid claims, restrictions or problems, to prove that the seller can transfer free and clear ownership. The search ensures there are no other liens or claims outstanding.
Titled Lot
A lot which is titled will enable the purchaser to take ownership of the land sooner and the building process will not be delayed by any restrictions by the land development. A titled lot allows Celebration Homes to access the site and undertake all works necessary for the application of a building licence enabling a quicker building timeframe.
Document registered with certificate of title confirming change of ownership.
A complete home and land package option that is designed and built ready to move into.


Untitled Lot
An untitled lot may still require the provision of services such as roads, curbing, footpaths, water and power before a building licence can be submitted and Celebration Homes or any other home builder can commence construction of the home.


Valuation fee, revaluation fee
Fee which may be charged if the lender seeks to cover the cost of valuing the property taken as security for the loan. Under a reverse mortgage, some lenders may require revaluations during the term of the loan monitor their loan-to-valuation exposure.
Valuations (Appraisal)
A report detailing a professional opinion on the value of the property.
A person qualified by education, training, and experience to estimate the value of real property and personal property.
Vanadium stains
Vanadium stains (as shown below) are a thin film on the surface of light coloured bricks that weather away with time. They result from the vanadium salts naturally present in most clay materials used to produce light coloured bricks. They are left on the surface of bricks as excess water migrating through the brick during the bricklaying process dries out. These stains are neither harmful, nor permanent and do not indicate a defect in the product. They are a thin film on the surface on the brick or paver and will fade with time or the removal can be quickened with chemical treatment.
Any change made to your contract document after signing your PWC and building contract. These are written up on a variation order to be amended on your final plans.
The person legally authorised to sell a property, generally the legal owner or registered proprietor.


Water closet or toilet
White plaster set
The second layer applied to your internal walls in the plaster process.
Wind Loading
A rating determined by our Engineers that specifies the level of wind your home will be exposed to. Home’s located close to the ocean are more affected compared with lots further in land. Wind loading can also be affected by the density of housing surrounding your home.
Wind Zone
one of the major structural forces placed on buildings is the loading that is generated by the wind. In Perth this is reported in the form of a non cyclonic ‘N’ wind zone ranging from 1 (lowest) to 6 (highest). This dictates the tie down requirements of the roofing structure to combat the uplift generated by the wind.
Working drawings
Set of drawings completed by the Drafting department that are used by trades and consultants to build your home. The set consists of floor plan, elevations, electrical plan, internal layouts & site plan.