Burgess Thomson Lawyers

Advice For Lenders

Property & Conveyancing

Thinking about lending money?

When considering the act of lending money, it is paramount that private lenders, including private mortgage lenders and those involved in private money lending, are fully aware of the complexities and risks associated with these financial transactions.

Burgess Thomson, an expert law firm with a specialisation in property finance law, understands the intricacies of loan agreements, the importance of precise loan documents, and the critical nature of legal compliance in private lender loans.


How Burgess Thomson Can Help with Lending Money

At Burgess Thomson, our legal expertise is not focused solely on providing services; it’s about offering peace of mind. We recognise that lending money is a substantial commitment that carries financial risks. Our solicitors are proficient in crafting comprehensive loan agreements that meticulously document the terms of lending. We ensure that these agreements are legally sound, reflecting the nature of the transaction while mitigating the potential for future disputes.

When lending, all agreements must be documented in accordance with the law to reflect the nature of the agreement to avoid a dispute. Financial disputes can fracture all types of relationships, be they business, friend or family. Ensuring that the agreement documents all terms agreed by the parties and are understood lessens the risk of a dispute arising in the future. A loan agreement should cover important details including interest rates, timeframe for payments, default provisions and if applicable, security for the loan.

The legal landscape for lenders is fraught with potential pitfalls. With our guidance, lenders can meet all responsible lending obligations, a critical aspect of private money lending. Our solicitors work closely with clients to ensure that every legal requirement is met and that the correct documentation is not just acquired but also aligned with the lender’s interests.


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Why Choose Burgess Thomson for Advice on Private Money Lending

Having served the local community for nearly 40 years, our team of dedicated estate planning lawyers in Newcastle are adept at crafting tailored advice for lending money.

Leading law firm: Burgess Thomson stands out as a leading law firm for those seeking advice on private money lending. The cornerstone of our practice is the belief that our clients’ financial security is paramount. We pride ourselves on offering personalized legal advice that is not only compliant with the latest regulations but also tailored to the unique needs of our clients.

Comprehensive Expertise. Proactive Approach: Our team of experienced solicitors is dedicated to providing the highest level of service. When it comes to lenders and the critical nature of their investments, we offer informed advice that encompasses all aspects of lending money. From drafting the initial loan agreement to advising on the enforcement of default provisions, our clients benefit from our comprehensive knowledge and proactive approach.

Decades of Expertise: By choosing Burgess Thomson, lenders are empowered with the confidence that comes from having an experienced legal team at their side. Whether you are a seasoned private mortgage lender or new to private money lending, our firm is equipped to handle the intricacies of your loan agreements and documentation with the utmost professionalism and expertise.

In conclusion, lending money requires a keen understanding of the law and an appreciation for the delicate balance between risk and security. Burgess Thomson is the legal partner that lenders require to navigate this balance successfully. With our exceptional legal team and our commitment to our clients, we ensure that every financial transaction is approached with the diligence and precision necessary to protect your assets and interests.

Contact us or request a quote to learn more about how our skilled team in Newcastle can help with advice on lending money.


When entering a transaction, your lawyer’s role is to protect your financial safety. They have your best legal interests in mind and prioritise your financial security by providing independent legal advice. They ensure all documentation, including the Lender’s standard charge/mortgage terms and the Title insurance statutory declaration are clearly outlined and recorded accurately.

Credit licensees must comply with the responsible lending conduct obligations under the National Consumer Credit Protection Act 2009 (National Credit Act). There are obligations on the lenders’ behalf in place to minimise the financial risk for all parties involved. It is the responsibility of the lender to ensure the loan is suitable for the borrower.

The responsible lending obligations from ASIC involve:

  • making reasonable inquiries about a consumer’s financial situation, and their requirements and objectives
  • taking reasonable steps to verify a consumer’s financial situation
  • making a preliminary assessment (if you are providing credit assistance) or final assessment (if you are the credit provider) about whether the credit contract is ‘not unsuitable’ for the consumer
  • if a consumer requests it, being able to provide the consumer with a written copy of the preliminary assessment or final assessment.

The National Credit Code (NCC) came into effect on 1 July 2010, and governs all credit contracts such as mortgages, guarantees and sale by instalments. The NCC deals with not only licensing requirements, but also responsible lending and comparison rates for mortgages and loans. The NCC requires credit providers to include a comparison rate when they advertise fixed-term credit for domestic purposes. It must include the interest rate as well as applicable fees and charges. Before entering the contract, the creditor must also give the consumer a pre-contractual statement as well as an information statement.

Lenders will need to provide a credit guide, a quote, a proposal document, and a written assessment to the consumer before engaging in credit activities. These documents can be given to a borrower personally, if the borrower consents, can be sent electronically or made available for retrieval in an electronic format.

The Australian Prudential Regulation Authority (APRA) announced an extension of its temporary capital treatment for bank loans on 8 July 2020. This means that lenders have the option of extending repayment deferrals for an additional four months for borrowers that require further assistance. However, an extension to a repayment deferral is not automatic and lenders will contact borrowers to determine what are the best options for their circumstances.

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