Private mortgages and secured lending

The interest rate is only part of the cost. A private mortgage can involve lender and brokerage fees, deductions from the advance and a short term that leaves the principal due at maturity.

Compare the loan amount with the money available

We review the commitment and related documents to explain interest, repayment, fees and conditions. We check how deductions, existing mortgage payouts and other closing costs affect the funds you expect to receive.

• The gross loan, any interest reserve (funds held back to cover interest) and the expected net proceeds.
• Payment dates, interest-only terms and whether payments reduce the principal.
• Prepayment rights, minimum interest, early repayment charges and discharge costs.
• Default provisions, renewal conditions and any further security or guarantee.

Plan for the maturity date

If the principal remains owing at the end of the term, you need a workable way to repay it. We explain the legal repayment obligations and review any proposed renewal or extension. Financing options and suitability should also be discussed with your licensed mortgage professional or other appropriate adviser.

Missing payments or failing to repay at maturity can put the property at risk. Depending on the documents and circumstances, the lender may take enforcement steps, including selling the property.

If you have already signed, tell us what you signed and when. We review the existing obligations and any remaining conditions before advising on the next step.

A registered mortgage gives security over identified property. Its usefulness depends on the documents, the property and the claims that may rank ahead of it.

Identify the parties, property and priority

We review the proposed borrower, registered ownership, authority to sign and the intended security. Title searches help identify existing mortgages and other registered interests. A second or subsequent mortgage needs particular attention to prior debt and the terms affecting priority.

Align the documents with the loan

The commitment, loan agreement, mortgage and any guarantee serve different purposes. We prepare or review the agreed documents, the conditions for advancing funds and any priority or postponement agreement needed between lenders.

• Who owes the debt and who is providing the property or other security.
• The amount, interest, payment terms, maturity date and permitted use of funds.
• Existing charges, required payouts, insurance and other closing conditions.
• Reporting, repayment and the steps required to release or transfer the mortgage.

Property valuation and the borrower’s ability to repay need their own assessment. A title search or mortgage registration does not establish market value or guarantee repayment. Tell us how the loan was arranged so we can identify any licensing or disclosure questions that require review.

A loan involving a family member, a corporation or a property seller still needs clear terms and an assessment of who can represent each person.

Vendor take-back mortgages

When a seller finances part of the purchase price, the purchase agreement and mortgage terms need to work together. We review the amount left owing, payments, maturity, other financing and the seller’s intended security as part of the agreed transaction.

Corporate and family lending

Identify whether the borrower and lender are individuals or corporations, who owns the property and who will sign. Written documents help clarify whether money is a loan, when it must be repaid and what security is intended. Corporate authority and related-party arrangements may require additional review.

Personal and corporate guarantees

A guarantee can create liability beyond the mortgaged property, depending on its terms. We review any limit, continuing obligations, demand provisions and proposed changes. A guarantor may need independent legal advice or representation.

Confirm representation early

Borrowers, lenders, property owners and guarantors can have different interests. We assess the applicable rules and conflicts before agreeing to act. Separate lawyers may be required; consent alone does not resolve every restriction on representing more than one party.

A proposed funding date depends on complete instructions, documents, cleared funds and satisfied conditions. Signing a commitment does not by itself complete the mortgage.

Signing, funds and registration

For the party we represent, we coordinate the agreed closing work, including identity and authority checks, execution requirements, searches and registration. We explain the conditions that must be met before funds can be released and what closing report or registered documents will follow.

Renewals, extensions and amendments

Check the written terms before assuming the lender will renew. A proposed extension can change interest, fees, repayment or security. We review the existing documents and the proposed changes, including any consent or further documentation needed from an owner, guarantor or other lender.

Assignments and repayment

If the mortgage is being transferred to a new lender, we review the assignment, authority and related documents within the agreed scope. When a loan is being paid out, the amount owing and the release of the registered charge require coordination. Our mortgage payouts and discharges service explains that work.