How to Notarise a Loan Agreement in Australia

A loan with an Australian lender almost never needs a notary. The lender identifies you itself, and any mortgage goes through its systems and your conveyancer. A notary appears when one side is overseas: a foreign lender, a guarantee for family abroad, a cross-border company loan, or enforcing a loan in another country.

Key takeaways

• For a domestic loan with an Australian lender, ask why a notary was requested. It rarely needs one.
• A foreign lender cannot watch you sign or check your Australian identification. A notary's certificate, usually with a DFAT apostille, solves both.
• Bring the agreement unsigned. The notary must see you sign.
• The notary does not review the terms or make the loan enforceable. A lawyer in the lender's country does that.
• For a guarantee, expect the notary to ask whether you understand your liability and are signing freely. Get independent legal advice first.

When is a notary actually needed for a loan?

The common situations are:

• Borrowing from a foreign lender, most often a mortgage over property you own or are buying in another country while living in Australia.
• Guaranteeing someone else's loan abroad, typically for a parent, sibling or adult child whose foreign bank wants a guarantor.
• A family loan across borders, where one side wants the signatures formally witnessed.
• A company loan across borders, such as between an Australian parent and an overseas subsidiary.
• Enforcing a loan overseas, where a foreign court or lawyer needs a certified copy of the signed agreement.

In each case the foreign party cannot see you sign. It cannot check an Australian identity document either. A notary's certificate answers both problems, and DFAT's apostille then confirms the notary's signature and seal for the foreign reader.

If both parties are in Australia and the lender is Australian, ask why a notary was requested. A domestic loan rarely needs one. Sometimes the request is a template instruction nobody has questioned.

How is a loan agreement notarised?

1. Get the final agreement and the lender's execution instructions in writing.
2. Read it, and get advice from a lawyer, ideally one in the lender's country.
3. Get a translation if any part is in a language you do not read.
4. Bring it unsigned, every page, with original photo identification. A passport is safest.
5. Sign before the notary, initialling pages if the lender asks.
6. Send it to DFAT for an apostille or authentication, then to the lender.

At the appointment the notary checks your identity against the name in the agreement. The notary must be satisfied that you understand the document and are signing of your own free will. The notary then witnesses your signature, attaches a notarial certificate, and records the act in the notarial register.

The notary does not review the terms. A notarial certificate says who signed and when. It says nothing about whether the interest rate is fair, whether the security is enforceable, or what the lender's country's law makes of the document. For those questions, you need a lawyer. See what a notarial certificate proves.

What if the agreement is in another language?

Foreign lenders often use their own standard forms, in their own language. That raises a particular problem. The notary must be satisfied you understand what you are signing, and may decline if you do not.

Expect to need a translation, or a bilingual version with both languages side by side. A bilingual document is often easier, because you sign one document rather than a document plus a separate translation. Our page on notarising documents in a language you do not read explains the options. The lender decides whose translation it accepts.

Why does the notary ask so many questions about a guarantee?

A guarantee is where the notary's checks on capacity and free will matter most. Guarantees for family members are signed under pressure more often than most documents. A guarantor can end up liable for the whole debt, not just a share of it.

Expect the notary to speak with you on your own. The notary may ask whether you understand the extent of your liability, and whether you have had independent legal advice. A notary who is not satisfied may decline to act. That protects you as much as the lender. See how notaries check capacity and duress.

Some foreign lenders also want a certificate that the guarantor received independent legal advice. That comes from a lawyer who advises you, not from the notary witnessing your signature. The two roles are separate. Before signing any guarantee, especially one secured over your home, see a solicitor.

What does a company need to sign a loan?

If a company is the borrower, lender or guarantor, the notary usually needs evidence that the people signing can bind it. That means company records, such as a current ASIC extract, and often a board resolution approving the transaction. Each signatory brings original photo identification.

Some foreign lenders also want the notary to certify the company's existence and the signatories' authority in the certificate itself. Tell the notary in advance, because that needs more evidence than witnessing a signature. See our pages on notarising for a company and notarising a board resolution.

An intercompany loan to an overseas subsidiary may also need registering or reporting in the subsidiary's country. That is a question for advisers there. See documents for a foreign subsidiary.

What if you need a certified copy later?

After signing, keep a complete copy. The agreement may later have to be produced to a foreign court, registry or tax authority. A notary can certify a copy, but only after sighting the signed original.

If the original went to the lender, you have two options. Ask the lender for a certified copy from its records. Or ask the notary, at the signing appointment, to make a notarised copy before the original leaves. The second is cheaper than trying to recover an original from overseas. See originals and copies.

Does it then need an apostille or legalisation?

Only DFAT issues apostilles in Australia. A notary cannot.

• If the lender's country is a party to the Hague Apostille Convention, DFAT apostilles the notarial certificate. Membership changes, so check the HCCH status table on the day.
• If it is not, DFAT authenticates the document. It then goes to that country's embassy or consulate in Australia for legalisation.

Some countries require security documents, such as mortgages over their land, to be signed before their own notary or at their consulate. An Australian notary's certificate may not be accepted for that. Ask the lender or its lawyer before booking, because a document signed the wrong way may have to be signed again. See apostille and authentication.

Who decides what the lender accepts?

The lender does, or the foreign registry or court if the document is going there. It is the receiving authority. Australian law does not decide whether a Portuguese bank accepts an Australian notary's certificate, or whether a mortgage over land in Greece can be signed in Melbourne. That is why two lenders in the same country can give different instructions.

Some lenders now offer remote signing by video, or an electronic signature platform. Whether that replaces a notary is also the lender's decision. If it offers one, ask in writing whether the result is acceptable for the security it is taking. A remote act that the lender's land registry later refuses has to be redone.

Which loan documents need what?

Document	Usually signed	Notary?
Australian home loan	Through the lender and conveyancer	No
Foreign lender's loan agreement	Before a notary here, then DFAT	Usually yes
Guarantee for family abroad	Before a notary, after legal advice	Usually yes
Mortgage over foreign land	As that country's law requires	Sometimes; ask first
Company loan across borders	Before a notary, with authority evidence	Usually yes
Copy for a foreign court	Certified from the signed original	Yes

What drives the cost?

Notarial fees are not set by statute, and they vary between practitioners. The main drivers are the number of signatories and documents, the length of the agreement, and whether a company's authority must be certified. Every page initialled takes longer than a single signature. DFAT and embassy fees are separate and charged per document. Ask for a quote once you have the lender's instructions.

Can a Justice of the Peace witness it?

For a document going overseas, generally not. A JP is a volunteer witness for Australian purposes. A JP's signature is not recognised abroad, and DFAT cannot apostille a JP-witnessed document. If the lender is overseas, plan on a notary unless it says otherwise in writing.

Here is an illustration, not a real case

A man in Sydney guarantees his daughter's apartment loan in Lisbon. The Portuguese bank sends a bilingual guarantee. He sees a solicitor first, who explains that he is liable for the whole loan. At the notary's appointment the notary speaks with him alone, confirms he understands, and witnesses his signature. DFAT apostilles the certificate, and he couriers the original to the bank.

In short

A domestic loan rarely needs a notary. A foreign lender, guarantee or company loan usually does, followed by DFAT. Bring the agreement unsigned. The notary checks identity and free will and witnesses the signature; a lawyer reviews the terms. Ask whether land security abroad must be signed there. See document notarisation.

People also search for

• Does a lease agreement need a notary?
• What if I already signed the document?
• What documents do I need to open an overseas bank account?
• What documents do I need to sell property overseas?
• How do I give a power of attorney for use overseas?

Signing a loan or guarantee for an overseas lender? Send us the lender's instructions, and we will explain each step before you book.