Mortgage Requirements When Buying or Refinancing
Insight
Most property purchases involve a mortgage. Understanding how loan conditions, bank requirements, settlement timelines and legal documents fit together is essential for a smooth transaction. Mortgage instructions, loan agreements and conditions must be handled correctly to avoid delays or last-minute issues at settlement.
People typically seek legal help when arranging a new mortgage, refinancing an existing loan, or dealing with conditions the bank requires before releasing funds. If you are reviewing a refinance, see the refinancing topic page for additional guidance.
How Mortgages Work in a Property Transaction
Tip:
Provide your lawyer with the bank’s loan approval and conditions early — delays usually occur when these arrive too close to settlement.
When you buy a property, the bank provides a set of instructions that your lawyer must follow before it will release loan funds. These instructions outline identity checks, documentation requirements, title review steps, insurance conditions and timing for settlement.
Your lawyer prepares mortgage documentation through Landonline and confirms that the bank’s conditions have been satisfied. They also liaise with the seller’s lawyer to coordinate settlement and ensure funds are transferred correctly.
Common Issues With Mortgage Approvals
Common pitfall:
Assuming pre-approval guarantees unconditional lending — it doesn’t. Banks still assess the specific property and can decline if issues are found.
Mismatched documents, insurance problems, valuation shortfalls and unexpected title restrictions are frequent causes of delay. Properties with cross-lease titles, body corporate obligations or rural servicing requirements can trigger additional bank checks. Short settlement dates can also be challenging if the bank requires updated statements or valuations.
Buyers often overlook the importance of early communication between the bank, broker and lawyer. Any gap in information can hold up approval.
Checks Your Lawyer Performs
Your lawyer ensures that all bank requirements are met before loan funds are released. This includes verifying identity, preparing mortgage documents, checking that the title is acceptable to the bank, confirming insurance and reviewing any legal risks raised by the property.
Step 1
Review Bank Instructions
Confirm all conditions, documentation requirements and settlement expectations.
Step 2
Title & LIM Review
Identify easements, covenants, restrictions or council issues that may affect lending.
Step 3
Insurance Confirmation
Banks require evidence of suitable insurance before releasing funds.
Step 4
Document Preparation
Landonline documentation and mortgage registration must be completed correctly.
Step 5
Settlement Coordination
Your lawyer works with the bank and seller’s lawyer to ensure funds transfer smoothly.
Costs for Mortgage-Related Legal Work
Legal fees vary depending on whether you are buying, refinancing, restructuring loans or dealing with complex bank conditions. Additional costs may arise when cross-lease titles, unit titles, lifestyle blocks or unusual council requirements need review. For general price context, refer to the property costs guide.
How to Choose a Lawyer for Mortgage Matters
Select someone familiar with residential lending and who can move quickly when banks require last-minute information. A lawyer who regularly works with brokers, banks and Landonline can anticipate issues and keep the process smooth.
Ask about turnaround times, communication expectations and what documents they require from you upfront.
Find a Lawyer for Mortgage Issues
If you explain the loan situation — new purchase, refinancing, restructure or delays — we can match you with lawyers who regularly handle mortgage instructions and settlement work.
Need help meeting bank conditions?
Describe the loan and property details and get matched with lawyers who work with mortgage approvals and refinancing daily.
Frequently Asked Questions
What does a lawyer do for a mortgage?
A lawyer reviews the bank’s instructions, prepares legal documents, confirms identity verification, checks title conditions, and ensures all requirements are satisfied so funds can be released on settlement day.
What are common bank conditions?
Conditions often include providing a signed agreement, confirming insurance, reviewing title or LIM issues, obtaining valuations, or meeting specific lending ratios. The bank may also require updates to cross-lease plans, body corporate information or council documents.
Do I need a lawyer for refinancing?
Yes. Refinancing still requires discharge of the existing mortgage and registration of the new one. See the refinancing topic page for more information.
What delays mortgage approval?
Common delays include valuation issues, incomplete documents, LIM or title concerns, undisclosed debts, missing insurance details or short settlement timeframes. Complex properties — such as units, cross-leases or lifestyle blocks — may require extra checks.
Can a bank decline to lend after pre-approval?
Yes. Pre-approval is conditional. Banks can decline or change terms if the property does not meet lending criteria, if new financial information emerges, or if the title or LIM reveals issues.
You don’t need all the answers
Property issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.
Need help with mortgage documents?
You can describe your situation — new purchase, refinancing, loan restructure or bank conditions — and be matched with lawyers who handle mortgage and lending work regularly.