First Registered Mortgage

First Registered Mortgage

A first registered mortgage is a primary loan that’s borrowed against the security of property, such as residential, commercial, industrial or rural land.  Not all mortgages are home loans – for example, a home could be used as security for a business loan, or to guarantee a loan for someone other than the homeowner. 

The maximum amount generally doesn’t exceed 65% of the value of the property mortgaged, with valuations normally determined by a registered valuer. 

Interest is paid monthly, or for an agreed longer term. Should the borrower default on their payments, the lender has the right to take possession of the property. In the case of default, the first mortgage takes priority, so will always be the first to be repaid. It’s therefore the least risky mortgage option for lenders.