NSW Land and Property Information has begun national consultation a new National Mortgage Form (sample here), which is expected to be introduced in 2015. The Form will standardise and streamline the process of preparing real property mortgages across all States and Territories.

It is proposed that there will be one form only of operative words for the mortgage replacing the various forms of operative words currently in use in the jurisdictions.

The uniform mortgage form will be able to accommodate terms and conditions of a mortgage and its related loan agreement to be incorporated by reference or, if preferred, with additional terms and conditions to be added to the form.

The national mortgage form will commence on a jurisdiction by jurisdiction timetable. This will depend when their local legislation is amended (as necessary) to approve the mortgage form. Implementation of the new mortgage form is likely to take at least 6 months from the time the mortgage form has been settled.

Preliminary consideration is being given for a “flyer” which could accompany the mortgage for execution to be provided to the mortgagor setting out the list of required witnesses, which will vary between jurisdictions. There is no national decision to do this at this stage.