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this is not what the law says.

These are not bank rules by state legislation - i.e. The Law!!

Licenced conveyancers are also authorised witnesses. She must have been one of the assistants - who often do the whole job under 'supervision'.

Why couldn't your lawyer witness? Lawyers are prescribed witnesses under schedule 1 http://www.austlii.edu.au/au/legis/qld/consol_act/lta1994109/sch1.html Perhaps your lawyer wasn't actually a lawyer? I've seen that happen in Sydney, support staff passing themselves off as lawyers.

All will need to sign the one mortgage form Witnesses: http://www.austlii.edu.au/au/legis/qld/consol_act/lta1994109/sch1.html

Is it a mortgage form?

'Docments' is a bit vague. I guess you are talking about loan contracts and mortgage documents. Mortgages are state based legislation and who can witness will vary from state to state so it may help if you indicate the state the property is located in. If NSW then an eligible witness is...