Mortgage Advice

What is a mortgage?

A mortgage is not a loan per se, but a form of security interest for a home loan taken over the real estate property that you are purchasing i.e. A mortgage is a legal agreement that conveys the conditional right of ownership on a real estate property by its owner (the mortgagor) to a lender (the mortgagee) as security.

The lender is generally in a special position of advantage over the borrower and therefore has certain obligations around disclosure and ensuring the borrower understands the terms of the agreement in relation to lending money.

Our services:

  • mortgage advice
  • guarantor advice.

Precedent Case for Guarantors:

Commercial Bank of Australia Ltd v Amadio involved a bank guarantee given by elderly parents for their son. The bank manager attended the home of the parents to obtain their signatures on a mortgage. He did not provide any explanation about the document. The bank subsequently demanded payment on the guarantee and when that could not be met the bank served notice that it would exercise power of sale under the mortgage.

The Court held that the bank had engaged in unconscionable conduct and could not rely on the guarantee. This required a finding that the parents suffered from a ‘special disadvantage’ in their dealings with the bank and that the bank had taken advantage of that special disadvantage.

Lenders are now required to ensure guarantor’s are adequately advised prior to guarantoring a loans.

We charge a fixed fee of $500 plus GST for assisting with advice. If you require our office to liaise with the bank and return signed documents further charges may be incurred.

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