The Mortgage Finance Guide to end your Confusion

A mortgage is a legal agreement that conveys the conditional right of ownership of an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan with the condition that the conveyance of the title becomes void upon the repayment of the debt.

It is legally enforceable if the mortgage is for a defined period, and the mortgagor has the right of redemption on payment of the debt on or before the end of that term.

Why is Mortgage Finance Common?
• Lower rate of interest
• Standard procedures
• Reasonably long repayment period.

What is a Security Document?
The document by which the agreement is effected is called a “Mortgage Bill of Sale” or simply just a “mortgage.”

What are the Common Mortgage Finance Types?
• Real Estate Mortgage – For all real-estate property
• Chattel Mortgage – For personal property such as appliances, cars and jewellery
• Second Mortgage – For obtaining mortgage when there is already an existing mortgage associated with the property

Who has the Right of Possession?
The right of possession and use of the mortgaged item normally remains with the mortgagor. But, the mortgagee has the right to take possession at any time to protect his/her security interest.

What Happens in the Event of a Default?
In the event of a default, the mortgagee can:

• Appoint a receiver to manage the property (if it is a business property), or
• Obtain a foreclosure to take possession and sell the property.

Glossary of Common Terms Used
• Mortgagor – the borrower of funds under the mortgage
• Mortgagee – the lender/credit provider of funds under the mortgage (e.g. a bank or credit union, etc.)
• First Mortgage – a mortgage that has priority over all mortgages and liens except those imposed by law
• Second Mortgage – a mortgage that is subordinate to a first mortgage

So, now that you have read this information guide, you should have a good basic understanding of mortgage finance. If you have doubts, you can contact Singh Finance. The firm’s expert finance brokers will help you in every possible way. Call on 0424 190 908 or enquire online now.

For more information on discharged bankruptcy home loan, visit :

Singh Finance Pty Ltd
P.O Box 4042
Parramatta NSW 2124
Ph: 0424 190 908
Fax No. 02 9608-6279

Australian Business Number: 78 154 555 843
Australian Credit License Number: 417408