Glossary - N

negative gearing

Borrowing money to invest where the return from the investment is less than the borrowing costs. For example, the rental income from your investment property is less than the interest payments on the loan used to purchase the property.

net asset value (NAV)

The value of assets less liabilities, often expressed as a per unit or per share value. For example, the net asset value of a managed fund or exchange-traded fund per unit would be calculated by subtracting the fund's liabilities from the fund's assets and dividing the result by the number of units on offer.

net worth

The difference between the total value of everything you own (assets), and the total value of all of your debts (liabilities). 

No Negative Equity Guarantee (NNEG)

Protects you from owing more on your reverse mortgage than your home is worth. The NNEG puts a limit on the amount owed.

No-Interest Loans Scheme (NILS)

A community program that provides interest-free loans for individuals or families on low incomes.

non-binding nomination

Guides your super fund trustee on who will get your super if you die. The trustee is not bound to follow these instructions.

non-commutable income stream

An income stream that cannot be converted into a lump sum payment.

non-concessional super contributions

Non-concessional super contributions are payments you put into your super from your savings or from income you have already paid tax on. They are not taxed when they are received by your super fund.

non-recourse loan

A type of loan secured by collateral such as property or shares, where if the borrower defaults the lender can only seize the assets put up as collateral for the loan. The lender cannot seek further compensation from the borrower even if the assets used as collateral do not cover the full amount of the loan.


Last updated: 29 Jul 2015