What "consent to mortgage" means

A mortgage is registered against a piece of property. Every person on the title — every registered proprietor — has to consent to that registration, even if they aren't borrowing the money. If your name is on the certificate of title but you're not a party to the loan, the bank still needs your signed consent before they can register their mortgage over the property.

That consent is given through a short document — usually called a consent to mortgage, consent of registered owner, or sometimes a mortgagor's acknowledgement. By signing it, you're agreeing that the bank can register a mortgage that uses the whole property as security, even though you don't personally owe the money.

When does this come up?

The most common scenarios are:

  • One spouse on the title, both on the loan — or vice versa. The non-borrowing spouse needs to consent.
  • A property owned jointly with a parent, sibling or business partner, where only one owner is taking out the loan against it.
  • An ex-spouse still on the title while the property is being refinanced — they may need to consent before settling out their share.
  • A trust structure where the appointor or another beneficiary holds title to property used as security for someone else's borrowing.

In each case, the bank's security depends on your signature. Without it they can't register the mortgage, and without that, they can't release funds.

Is independent legal advice required?

The short answer: often, but not always. Whether you'll be asked for ILA depends on three factors:

  1. Who benefits from the loan. If you're a consenting owner but you also benefit (for example, the loan refinances an existing debt secured against your property), banks frequently treat you as a co-borrower in substance and require ILA.
  2. The lender's policy. Most major Australian lenders require ILA for any non-borrowing consenting owner whose property is being used as security. Some smaller lenders will accept a signed acknowledgement without independent legal advice if the consenting owner is the borrower's spouse and clearly benefits.
  3. The relationship. Where the consenting owner isn't related to the borrower — say, a business partner or unrelated co-investor — ILA is essentially universal.

Banks are cautious here because the case law on enforceability is unforgiving. A guarantor or consenting owner who can later say "I didn't really understand what I was agreeing to" creates a serious problem for the lender. ILA is how they protect against that.

How consent to mortgage differs from being a guarantor

People often use the words interchangeably, but they're legally distinct:

  • A guarantor takes on a personal promise to repay someone else's debt. Their personal liability extends to the value of the guarantee, which may be capped or uncapped depending on the document.
  • A consenting owner doesn't promise to repay anything. Their exposure is limited to the property — if the borrower defaults, the bank can sell the property, but they can't pursue the consenting owner personally for any shortfall.

That distinction matters a lot in practice. A guarantor whose own home is at stake faces a bigger downside than a consenting co-owner of a separate property. But for the person signing, the practical step is similar: a meeting with an independent solicitor, an explanation of the document, signing, and a certificate going back to the bank.

What the ILA meeting covers for consent-to-mortgage

The structure of the appointment is the same as for a guarantor: identity check, plain-English explanation, walkthrough of the document, signing, and certificate. The emphasis shifts slightly:

  • The solicitor will spend time explaining that, by consenting, the whole property becomes available to the bank as security — not just the share owned by the borrower.
  • You'll be walked through default scenarios. If the borrower stops paying, the bank can take possession of the property and sell it. Your share of the proceeds will come out of whatever's left after the bank is paid.
  • The solicitor will check that you've consented voluntarily. This is particularly important where the parties are in a close personal or business relationship.

Cost and timing

Most ILA providers charge the same fee for consent-to-mortgage advice as they do for guarantor advice. At ILA Online the fee is $550 inclusive of GST, with no extra charge for the consent paperwork on top of the mortgage. The appointment usually takes 30 to 45 minutes.

If you and the borrower are also on the same loan, you'll generally do one combined appointment that covers both your roles. Our cost breakdown goes deeper on what to budget for.

Your next step

Check your bank's loan offer. It will tell you whether you're being asked to consent, guarantee, or co-borrow — and whether ILA is conditional on settlement. If you're not sure, ask your broker or settlement contact at the bank. Once you know what's required, book an appointment 48–72 hours before settlement to avoid last-minute scrambles.

General information only. This article gives general guidance for Australian borrowers and consenting owners. It is not legal advice and does not consider your individual circumstances. For advice on your specific situation, book a paid ILA appointment.