A mortgage goes hand in hand with a loan (for more information on loans, please review our synopsis on Borrowing or Lending Money).

Essentially a mortgage is an agreement whereby a borrower grants the lender an interest over an asset owned by a borrower to provide the lender with security for the loan. The term “mortgage” is used when security is granted over real property rather than over goods or chattels.

If You Are Borrowing

It is imperative that you read and fully understand the terms and conditions of any mortgage agreement as it often imposes obligations separate and additional to those set out in the loan agreement.

A mortgage agreement may be a document separate from the loan agreement but it is important to understand that the agreements are often linked, meaning a breach of one will constitute a breach of the other. What this means is that if either the loan agreement or mortgage agreement is breached then your property may be seized and sold.

Further to this, in the event that the sale proceeds do not cover the debt, you may also be held liable for any additional amounts owed.

If You Are Lending

It is always recommended that anyone lending money or providing credit consider obtaining a mortgage over real property and/or charge over goods or chattels.

When obtaining a mortgage, it is important to ensure that the mortgage adequately sets out the borrower’s obligations and your rights, particularly to cover a default. It is also important to ensure the mortgage is registered with the Titles Office.

It is noteworthy that State legislation exists that governs mortgages and sets out certain requirements that the lender must comply with in the event a default occurs and the lender seeks to enforce their rights.

How We Can Help

If you are borrowing money we can assist by:

  • Explaining the meaning and effect of any loan document and/or mortgage and providing an Advice Certificate if required;
  • Identifying potential areas of risk or concern and by suggesting possible solutions;
  • Negotiating your loan document and/or mortgage on your behalf (if possible).

If you are lending money then we can assist by:

  • Drafting loan, mortgage and/or guarantee documents on your behalf.
  • Identifying potential areas of risk or concern and by suggesting possible solutions;
  • Helping with background checks and enquiries;
  • Registering the mortgage with the Titles Office.

Please note that we cannot offer financial advice.

We will work with your accountant and investment advisors/mortgage consultants to achieve your desired outcome.

For further information please contact: