Joint Mortgage Agreement Template for Australia

The Joint Mortgage Agreement is a fundamental document in Australian property financing, used when multiple parties wish to jointly secure a loan against a property. This agreement is essential when family members, business partners, or couples seek to purchase property together, establishing their shared responsibility for the mortgage while protecting the lender's interests. The document complies with Australian federal legislation including the National Consumer Credit Protection Act 2009 and relevant state property laws. It details crucial elements such as loan terms, security arrangements, borrower obligations, default provisions, and enforcement rights. The agreement's structure ensures all borrowers understand their joint and several liability, meaning each party is individually responsible for the entire loan amount while also sharing collective responsibility.

1. Parties: Identifies all parties to the agreement including the lender and joint borrowers

2. Background: Outlines the context of the loan, purpose, and basic structure of the joint mortgage arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out rules for interpretation

4. Loan Amount and Purpose: Specifies the principal sum being borrowed and its intended use

5. Security Interest: Details of the property being mortgaged and the nature of the security interest being created

6. Joint and Several Liability: Establishes that all borrowers are jointly and severally liable for the entire loan amount

7. Repayment Terms: Details of how and when the loan must be repaid, including payment schedule and methods

8. Interest and Charges: Specifies interest rates, calculation methods, and other applicable charges

9. Borrowers' Covenants: Obligations and promises made by the borrowers regarding the property and loan

10. Events of Default: Defines what constitutes a default and the consequences thereof

11. Lender's Rights and Remedies: Details the lender's rights in case of default or breach

12. Property Maintenance and Insurance: Requirements for maintaining and insuring the mortgaged property

13. Representations and Warranties: Statements of fact and promises made by the borrowers

14. General Provisions: Standard clauses covering notices, amendments, governing law, etc.