Deed of Consent
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Deed of Consent is a legal document in which a party with a prior interest agrees to a new arrangement affecting that interest. In lending it most often means a first mortgage holder consenting to a second mortgage or a caveat loan being registered behind them. In practice a first mortgagee, usually a major bank, will only consent where the second loan is modest against the available equity, and it may charge a consent fee and set conditions before signing.
Why Deed of Consent Matters
A deed of consent is what lets a second lender register behind a first, so it can make or break a deal.
- First lender agrees to let a new security rank behind it
- Often required before a second mortgage can settle
- Protects the priority of each lender's security
- A common condition of private lending approvals
- Negotiated between the lenders, not just the borrower
Common Features of Deed of Consent
- Signed by the party with the prior interest
- Sets out the consent and any conditions
- Held alongside the security documents
- Frequently used with a caveat loan and second mortgages
- Can be refused, which may stop the new loan
Official reference: asic.gov.au
What is a deed of consent?
A document where a party with a prior interest, usually a first mortgage holder, agrees to a new security ranking behind them.
When do I need a deed of consent?
Typically when registering a second mortgage or caveat loan behind an existing first mortgage.
Can a first mortgagee refuse consent?
Yes. Refusal can stop a second loan from settling, which is why consent is sought early and a fee is often paid.
Who signs the deed of consent?
The holder of the prior interest, often with the new lender and borrower as parties.
Is a deed of consent the same as a deed of variation?
No. A deed of variation changes the terms of an existing agreement; a deed of consent approves a new one ranking behind it.