Special consumer credit provisions for mortgages

The National Credit Code (NCC) contains special consumer credit provisions relating to mortgages. It is a strict liability offence for a credit provider to enter into a guarantee or a mortgage that contravenes these provisions.

In addition to the criminal penalty, the offending mortgage provision may be either void or unenforceable, depending on the NCC section breached.

Sections 41 to 53 of the NCC provide special requirements and obligations in respect of mortgages which secure obligations under NCC regulated contracts or related guarantees.

Specifically, there are special provisions relating to:

• • mortgages that the NCC applies to and exemptions from the provisions of the NCC;
• • the form of mortgage and content;
• • restrictions on the property which can be the subject of an NCC regulated mortgage;
• • provision of certain documents to the mortgagor by the credit provider;
• • restrictions and requirements for certain types of mortgages;
• • the maximum amount which may be secured; and
• • assignment or disposal of mortgaged property.

For more information, see Special consumer credit provisions for mortgages.