There are two key documents that you will need to sign, the mortgage and the home loan agreement.  People often confuse these two documents although they are very different.

The mortgage:
Is the security for your loan (it gives your lender certain rights if you can’t pay your loan).  We send this to your lawyer who will complete it and then explain it to you.  Your mortgage document covers things like:

• Your obligations to make loan repayments, rates and insurance on time
• Keeping your property maintained and insured
• When the Bank can sell or enter into possession of the property if you default in your obligations
• Any restrictions in dealing with your property (for example, you cannot get a second mortgage without the Bank's consent).

The home loan agreement:
Sets out the terms and conditions of your loan, we prepare this.  Your loan agreement covers things like:

• How much we are lending you and how long the loan is for
• The interest rate, interest calculation and fees
• When payments will be made and what happens if they’re late or missed
• Changes you can make to your loan and any costs that might be involved
• What the interest rate is and how much notice we need to give about changes.

Next page | Structuring your home loan >>

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