How Secure is a First Mortgage Investment?

A Mortgage Investment is generally considered to have a high level of security for several reasons:

For most loans:

  • We lend generally 66.6% or less of the value of the Security Property.
  • A valuation is conducted by an Approved Valuer prior to a First Mortgage Investment being made.
  • Approved Valuers who provide to us the valuation of the security property have current professional indemnity insurance.
  • We hold the position of registered first mortgage over the title to the Security Property which means the debt owed to the manager has priority over all other debts which may be owed by the Borrower with the exception of statutory charges, rates, GST and land tax and if the security is a unit, body corporate levies. We ensure rates and land tax and body corporate levies are paid up to the due date when we authorise any advance.
  • A range of conveyancing searches are carried out on the Security Property to protect your investment.
  • We are a member of Veda Advantage and each borrower undergoes a complete credit assessment with that organisation.
  • We have in place systems and personnell to properly monitor all loans should there be a default we can react quickly to protect Investors’ money.
  • Each loan will have a detailed supplementary Product Disclosure statement explaining the specific details of the Mortgage Investment Offered.