This case concerned an equitable mortgage which provided for an exceptionally high interest rate of 130% p/a but somewhat surprisingly the borrowers failed to plead that this rate was unconscionable in their defence. Instead the husband pleaded a defence of non est factum and the wife filed no defence. There was no evidence of the …
A sister was persuaded to grant a second mortgage over her home for the benefit of her bankrupt brother. The interest rate was 48% p.a. with a default rate of 96% p.a. The second mortgagee sought possession and judgment for $160,000 plus unpaid interest. The sister argued that she did not receive the funds, the …
Big Kahuna Holdings v Joanna Kitas [2012] NSWSC 615 Read More »
The borrowers sought to set aside a mortgage taken over the family home in 1988. The lender sought to enforce the mortgage. The interest rate on the mortgage was 20% per annum. This was not unusual, at the time of the loan the interest-rate on Court judgments was 18% per annum. The mortgage contained a …
In this case the lender obtained default judgment in April 2009, which the borrower filed a notice of motion to set aside in May 2009. The matter came before the court a number of times and in November 2009 an agreement was reached whereby the terms of the mortgage would be varied so the interest …
The mortgage included a clause providing for damages for late repayment. White J held this attracted the doctrine of penalties if, as a matter of substance, the sum payable was not a genuine pre-estimate of the loss the lender may suffer by being kept out of its money, but was in the nature of a …
The mortgage in this case was a “caveat loan” with a extraordinary high interest rate of 87 percent (lower) and 174 percent (higher rate) with a provision for the interest to compound with daily rests. The loan of $240,000 advanced in March 2005 had by June 2007 been calculated at $11,588,845. The court heard that …
Galadriel Lothlorien v Station 1 [2008] NSWSC 91 Read More »
In the case the lender loaned $200,000 to borrower at 360% p.a. Later, by agreement this was capped to 120%, however compound interest of 1% for part of the term resulted in a payout figure of $800,000 even though the principal had been repaid. The loan was secured by an unregistered mortgage pursuant to which …
Integrated Lending v Lion International Holdings [2005] NSWSC 1268 Read More »
