How does it work

This is the most common question we get asked and while our formal disclosure documents and other information on this page set out the investment process in detail, the following is a simplified explanation.

  • You complete an application to become a Fund member and discuss your investment preferences with one of our staff. There is no cost to join or invest.
  • We will present you with some potential investments to choose from. This information includes a summary of the security property, its current value and proposed loan amount.
  • You select an investment and remit your money to us which is held in the Fund’s Investor Trust Deposit account with an Australian trading bank until applied to the selected investment.
  • We confirm your investment by way of a Mortgage Certificate
  • Each month we will pay you the agreed rate of fixed interest, subject to the borrower meeting their repayments under the mortgage you have invested in. If the borrower defaults on payment we will advise you accordingly and keep you regularly informed regarding the recovery process. At our discretion we may continue to pay you your interest payment as if there was no default (but we still advise you of the default). When the arrears of repayment are recovered from the borrower, if we have maintained you interest payment we retain any late payment fees the borrower may have paid. If we have not maintained your interest payments while the mortgage was in default, you receive 80% of any late payment fees.
  • You cannot withdraw your investment until the borrower repays the mortgage (usually at maturity).
  • When a mortgage is repaid your money returns to the Fund’s Investor Trust Deposit A/C (ITD) which can then be redeemed or invested in another mortgage. Investors with funds in the ITD A/C receive priority for placement into new mortgage investments.
  • If the borrower wishes to roll over their loan for a further term and we agree, you will be advised of the new terms and have the opportunity to either redeem or continue your investment.
  • You receive an annual statement of interest received for tax purposes.
  • You can request a statement of your account from us at any time.