In Permanent Trustee Australia
Limited & 1 Or v Mary Gusevski & 1 Or [2005] NSWSC 1281, the New South Wales Supreme Court set aside a mortgage on the grounds it was unjust within the meaning of the Contracts Review Act 1980.

The Court found that the mortgage was unjust because of the way in which it was
made: the lender failed to properly investigate the borrower’s financial
situation at the time when the loan was approved and the lender was prepared to lend
on the value of the security only. At the time when
the borrower entered into the loan, her living expenses
(including the living expenses of her children) were about $1,421.00 per month.
At the time her income averaged $1,630.00 per month.

The decision was made notwithstanding a finding that at the time when the borrower executed the documents giving
rise to the loan and mortgage she
was well aware of what a mortgage was and of the consequences which would flow
should she fail to make proper payments on the loan, which the judge found she
was well aware she was accepting.

The claim was made in response to a claim by the lender for possession of the secured property. It was apparently a bitterly contested matter and the facts disclose a borrower with significant personal and health problems.