24/11/2025
Understanding all obligations mortgages by Tina White ClearStone Legal
The word mortgage comes from ‘death pledge’. It's not as gloomy as it sounds, but it does hint at the seriousness of what you're signing up for. When you borrow money from a bank to purchase your home, the bank will usually register what's called an all obligations mortgage on your property title as security for the loan.
One of the most common forms of mortgage security; it doesn’t just cover the loan you're currently taking out; it secures all current and future debts with that same bank. This includes your new home loan, any personal loans, credit cards, loans you’ve guaranteed for someone else, joint accounts with others and company loans where you’re a director.
We recently acted for a de facto couple purchasing a home together. Their bank required an all obligations mortgage. During our meeting, we explained the implications of this type of mortgage. One client mentioned he already owned another property with his siblings, and it too was mortgaged with the same bank. Because both properties were secured by all obligations mortgages with that same bank, the bank could treat them as connected security. This meant that if the siblings defaulted on their loan, the bank could choose to sell either property to recover its costs—including the de facto couple’s new home—even if their loan was in good standing.
To reduce your exposure under an all obligations mortgage, you could consider using different banks for different loans or financial relationships (e.g. business vs personal) or ask your bank for assurance that they would treat each property in isolation.
Understanding how your mortgage works can make all the difference when it comes to protecting your assets. We are very happy to help – you can reach ClearStone Legal on 09 973 5102.