All Topics / Finance / Second mortgages and caveats

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  • Profile photo of LouiLoui
    Join Date: 2016
    Post Count: 13

    Hi guys,

    I’m sure this has been covered off before my time, but are you finding it difficult getting banks to consent to second mortgages? Do they have a right to decline the request? Also if they see a caveat is it a reason for them to not advance further funds under its mortgage ? Interested in your thoughts as I wouldn’t have thoughts it should be a big issue to them if they are within there lvr guidelines based on a recent valuation .


    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    In some states the first mortgagee needs to consent to a second mortgage bring lodged, in other states no consent will be needed.
    Most major lenders will consent, but they want all parties to enter into a deed of priority so that they can be sure they will come first. I am not sure if they can refuse consent or not, but contractlly you are probably agreeing not to allow a second mortgage without getting their consider – you will be agreeing to this in your loan agreement with them.

    Keep in mind that a mortgage can still be effective if it remains unregistered – but less secure for the mortgagee.

    A lender won’t lend any more money if there is a caveat on title.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

Viewing 2 posts - 1 through 2 (of 2 total)

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