Mortgages are the key security interests that lenders take when they are lending funds to debtors and wanting to take security over land. Mortgages can be registered and unregistered, but as with General Security Agreements, the prompt registration of these is crucial to securing the ranking a creditor requires. The mortgage over a property allows the creditor to undertake specific recovery options that will be detailed in the mortgage. Every mortgage document needs to be considered carefully because they can provide for different requirements. However, the standard mortgages normally include at a minimum:

  • Creditor’s right to take possession of the property
  • Creditor’s right to sell the property for default
  • Requirements that the debtor must abide by to ensure they are not in breach, i.e. repayment of amounts when due, paying rates, keeping the property insured and making sure all Council requirements are adhered to in respect of building works that may take place on the property.

For ease of reference regarding what type of details are required when applying for mortgages, please refer below to the mortgage details for some banks in New Zealand: