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Land Transfer Act 2017

Dealings in estates and interests in land - Mortgages

101: Mortgage variation instrument required to vary mortgage

You could also call this:

"Changing a Mortgage: What You Need to Do"

Illustration for Land Transfer Act 2017

You need to use a mortgage variation instrument to change some terms of a registered mortgage. This includes changing the amount of money secured by the mortgage, the interest rate, or the length of the mortgage. You also need to change the conditions or rules of the mortgage. You must sign the mortgage variation instrument if you are the mortgagor, unless the change only reduces the amount secured or the interest rate. The mortgagee must also sign, unless the change only increases the amount secured or the interest rate. The instrument must contain the required information. If someone else has a mortgage on the same property, you need to get their consent before registering the change, unless the change only reduces the amount secured or the interest rate. Their consent will affect them and anyone who later gets an interest in the mortgage from them. You also need to get the consent of any submortgagee, which will affect them and anyone who later gets an interest in the mortgage from them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731244.

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100: Mortgage instrument required to register mortgage, or

"To register a mortgage, you need a special document signed by the land owner."

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102: Mortgage priority instrument required to vary priority of mortgages, or

"Changing the Order of Mortgages on a Property Requires a Special Document"

Part 3Dealings in estates and interests in land
Mortgages

101Mortgage variation instrument required to vary mortgage

  1. A mortgage variation instrument must be used in order to register a variation of any of the following terms of a registered mortgage:

  2. the amount or stated priority limit secured by the mortgage:
    1. the rate of interest:
      1. the term or currency of the mortgage:
        1. the covenants, conditions, and powers contained or implied in the mortgage.

          1. A mortgage variation instrument must be executed—

          2. by the mortgagor, unless the variation only reduces the amount secured or the stated priority limit or the rate of interest; and
            1. by the mortgagee, unless the variation only increases the amount secured or the stated priority limit or the rate of interest.

              1. A mortgage variation instrument must contain the prescribed information.

              2. The consent of a subsequent mortgagee must be obtained before registration of the mortgage variation instrument unless the variation only reduces the amount secured or the stated priority limit or the rate of interest.

              3. The consent under subsection (4) binds the mortgagee who gives consent and every person who subsequently derives an interest in the mortgage from the mortgagee who gives consent.

              4. The consent of a submortgagee of a mortgage must be obtained to the variation of the mortgage.

              5. The consent under subsection (6) binds the submortgagee and every person who subsequently derives an interest in the mortgage from the submortgagee.

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