Aaron Whybrow explains how title deeds work in Australia: they're government records of property ownership, and when you borrow money, lenders register their claim on the title to guarantee repayment. Older deeds are paper documents held by solicitors; newer ones are electronic.
What are the deeds to your house or commonly called title deeds? Hey, it's Aaron from Diagnostics and Finance. Your title deed to your house is the deed that the government has related to the property that you're in and the home that you own. And that could be multiples if you've got investment properties as well. And what happens in Australia is that we have the opportunity to apply for a home loan to fund the purchase of our home and that lender will secure itself on the title deed so that in the event of sale, they'll get first dibs at the money or the money from the proceeds of that sale. So if you've ever heard or seen the movies with the deeds and they're wrapped up and they've got the big stamp on it, or you've just been asked from a simple person like myself as a mortgage broker, you may have paid off your home, which is the most common thing, or you might be looking to help your children out with a family pledge. And the one thing that we're going to ask for is where is the title deed? So we can send it off to the bank and we can get the bank to register themselves on there so they can release the money to you. Most of the time in Australia, we're finding that more and more commonly we'll get electronic title deeds, but there are a lot of older deeds out in the marketplace that you may have to find in the solicitor's office, the filing cabinet or a range of other places that need to be located to find the title deed to lend some money. So what is this funky title deed? It is the deeds that allow you to buy a home. In a home, ownership allows you to borrow money and most commonly are usually a point of question when, when you haven't borrowed any money on a property before and you have to find the title deed. Hey, it's Aaron from Diagnostics and Finance. Look forward to talking to you soon.
