First Mortgagee Consent
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
First Mortgagee Consent is the written agreement of a first mortgage holder allowing a second lender to register security behind them on the same property. It is the practical hurdle behind almost every second mortgage and is usually formalised in a deed of consent. Major banks often decline consent or take weeks to respond, which is why short-term private lending sometimes proceeds by caveat loan instead.
Why First Mortgagee Consent Matters
Whether the first mortgagee consents decides if a second loan can settle at all, so it is often the make-or-break step.
- Lets a second mortgage register behind the first
- Formalised in a deed of consent
- Banks can refuse or delay, holding up settlement
- Often replaced by a caveat loan when consent is slow
- Sought early because it controls the timeline
Common Features of First Mortgagee Consent
- Written consent from the first-ranking lender
- Often subject to conditions or a consent fee
- Required before a registered second mortgage
- Can be refused at the bank's discretion
- Drives the structure of the second loan
Official reference: asic.gov.au
What is first mortgagee consent?
The written agreement of a first mortgage holder allowing a second lender to register behind them.
Why do banks refuse consent?
Because a second loan can complicate their recovery if the borrower defaults, so many simply decline or delay.
What happens if consent is refused?
The second lender may proceed by caveat loan instead, or the deal may not go ahead.
Is first mortgagee consent the same as a deed of consent?
A deed of consent is the document that records the consent; first mortgagee consent is the act of giving it.
How long does consent take?
It varies. Banks can take weeks, which is why private lenders often factor consent risk into the timeline.