do i need independent advice when i take out a mortgage?

When you take out a mortgage for a home loan, there are circumstances where independent legal advice is required and other times when it is recommended.

The requirement for ‘independent legal advice’ usually arises where a borrower or a guarantor may be seen as ‘vulnerable’. It might be where:

• A parent is ‘guaranteeing’ a loan made to their child.

• a company is borrowing the money and the security for the loan is taken over a home owned by the directors.

• a couple is borrowing funds against their home to provide a loan to their business.

• a loan for an SMSF or a Trust and the Director is the ‘Guarantor’.

In this process, we can help you by explaining the loan documents and the obligations and ensure that you understand your ongoing responsibilities in relation to the debt.

If you are then satisfied and you understand, the process will entail you signing a statutory declaration that swears that you have received legal advice.

We certainty recommend obtaining independent legal advice with respect to taking out a mortgage from a financial institution.

We advice that we cannot provide you with financial advice. An Accountant or Financial Advisor should be consulted for that purpose.

If you require independent legal advice in relation to mortgage documents, you may call our office on (02) 9054 1311 to schedule an appointment.