Private Mortgage Loan Agreement Template for New Zealand

The Private Mortgage Loan Agreement is essential for private lending transactions secured by real property in New Zealand. This document is typically used when individuals or private entities, rather than traditional banking institutions, provide mortgage financing. It must comply with New Zealand's regulatory framework, particularly the Credit Contracts and Consumer Finance Act 2003 and the Property Law Act 2007. The agreement includes comprehensive terms covering loan amount, interest calculations, repayment schedules, security arrangements, borrower covenants, and default provisions. It's designed to protect both lender and borrower interests while ensuring regulatory compliance with New Zealand's consumer protection and property laws. The document becomes particularly relevant in private lending scenarios, property investments, refinancing situations, or when traditional bank financing isn't suitable.

1. Parties: Identifies and defines the Lender and Borrower with full legal names and addresses

2. Background: Explains the context of the loan agreement and the intention to create a mortgage security

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

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

5. Interest Rate and Calculations: Details the applicable interest rate, calculation method, and any variation mechanisms

6. Repayment Terms: Specifies payment schedule, amounts, and methods of payment

7. Security Details: Describes the property being mortgaged and nature of the security interest

8. Borrower's Covenants: Lists the borrower's obligations including property maintenance and insurance requirements

9. Events of Default: Defines circumstances constituting default and consequences

10. Lender's Rights and Remedies: Outlines the lender's rights upon default, including power of sale

11. Representations and Warranties: States the borrower's assertions about their capacity and the security property

12. Costs and Expenses: Allocates responsibility for legal fees, registration costs, and enforcement expenses

13. General Provisions: Includes standard clauses on notices, amendments, governing law, and dispute resolution