Online identity checks and e-signing for a business second mortgage

Because a second mortgage is registered on the title of a property, lenders take identity seriously. The good news is that most identity checks and much of the signing can now be done from your own phone or computer. This page explains what to expect and how to avoid the small things that hold applications up.

Who has to verify their identity?

Expect every one of these people to complete their own check:

• Each borrower, including directors where a company borrows.
• Each registered owner of the property, even if they aren’t borrowing.
• Each guarantor, including family members whose property is involved.

Nobody can complete a check on someone else’s behalf. If your spouse co-owns the home, they’ll get their own link. That’s one more reason to have the co-owner conversation before applying.

What does an electronic identity check involve?

Processes vary between lenders and their providers, but a typical online check involves:

1. A secure link sent by email or SMS.
2. Photos of your photo ID, such as a driver licence or passport.
3. A selfie or short video to match your face to the ID.
4. Confirmation of personal details, such as date of birth and address.

It usually takes a few minutes if your documents are current and to hand.

How is this different from myID?

It’s easy to confuse the two. myID is the Australian Government’s Digital ID app, used to log in to government online services. The ATO explains that myID, together with the Relationship Authorisation Manager (RAM), lets you act for a business in ATO online services. The Australian Government Digital ID System describes it as a secure, voluntary way to verify who you are online.

You may use myID during an application, for example to download your ATO statement of account or lodged returns. But a lender’s identity check is a separate process, run by the lender or its provider.

What about e-signing?

Many loan documents can be signed electronically where the lender allows it. You’ll typically receive a link, review each document, and sign by following on-screen steps. A few points:

• Read before you sign. E-signing is quick; that’s not a reason to skim. Focus on the term, fees, defaults and maturity.
• Independent advice first where it’s needed, particularly for co-owners and guarantors.
• Some documents may still need a wet or witnessed signature, depending on the lender and the situation. You’ll be told.

When the mortgage itself is registered, it’s lodged electronically through a lodgment network by the lender’s representative. ARNECC coordinates the national rules for electronic conveyancing. See electronic settlement.

What causes ID and signing delays?

Hold-up	How to avoid it
Expired licence or passport	Check expiry dates before applying
Name differs between ID and title	Have change-of-name or marriage documents ready
A co-owner hasn’t been told	Talk before the application, not during
Links going to junk mail	Watch spam folders and confirm contact details
Poor photo quality	Use good light and a flat surface
Guarantor without advice	Arrange independent legal advice early

If you’d like to get the process started with everything lined up, the 60-second enquiry is the first step and doesn’t involve a credit check.

How do you stay safe online?

Property-related scams target exactly this kind of process. A few habits help:

• Never share one-time codes with anyone who calls you.
• Verify unexpected requests by calling back on a number you already have, not one in the message.
• Be wary of last-minute changes to bank account details for payments. Confirm by phone.
• Don’t send ID documents by ordinary email unless you’ve confirmed it’s required and safe.

Who checks what at the lender’s end?

Behind the scenes, the lender and its lawyers match the people who verified their identity with the names on the title and the loan documents. If anything doesn’t line up, such as a missing middle name or an old address, they’ll come back to you. Answering quickly keeps things moving. See keeping your application moving.

What should co-owners and guarantors know before their link arrives?

People who aren’t running the business, such as a spouse, a parent or a business partner, often receive an identity or signing link with little context. A short heads-up makes the experience far smoother:

1. Tell them it’s coming, roughly when, and from whom. An unexpected link asking for ID looks like a scam, and they’d be right to be cautious.
2. Explain what it’s for. The loan, the property and their role (owner, guarantor or borrower).
3. Suggest they check their ID is current and their name matches the title.
4. Remind them they can ask questions before completing anything, and that independent legal advice is available to them.
5. Agree how they’ll confirm it’s genuine, for example by calling you or the specialist on a known number.

That small amount of preparation protects them, keeps the application moving and makes the whole process feel like a shared decision rather than paperwork landing out of nowhere. Our page on talking it through with a co-owner covers the bigger conversation.

Get the details right from the start

The simplest way to make the online part painless is to be accurate in the first enquiry: everyone on the title, their full names, and the right contact details for each. Send a short enquiry and one specialist will guide you through what’s needed. There’s no credit check to ask, and your details stay with that person.

Start my enquiry with the right details →