Document background
The First Payment Letter Mortgage is a crucial document in the Australian mortgage lending process, typically issued immediately after loan settlement. This document serves as the primary communication tool between the lender and borrower regarding the initiation of payment obligations. It is used when a mortgage loan has been approved and settled, requiring clear communication of the first payment details to the borrower. The letter includes essential information such as payment amount, due date, payment methods, account details, and any specific requirements or conditions that must be met. It operates within the framework of Australian consumer credit legislation, particularly the National Consumer Credit Protection Act 2009 and the National Credit Code, ensuring that borrowers receive clear, compliant information about their payment obligations. The document is particularly important as it establishes the payment pattern for the entire loan term and helps prevent any misunderstandings about initial payment responsibilities.
