Borrowers Information

Key Facts for Borrowers:

1. Interest Only 1st Mortgages (not 2nd Mortgages) on land and non-residential property up to 66% of the valuation of your property.
2. Interest is payable every three months (quarterly).
3. Payment within 7 days of the due date results in a lower interest rate being payable than otherwise.
4. Rate Payable: Minimum of 9.50%.
5. Mortgages are for 3 years and can be extended if conducted satisfactorily (the oldest mortgage has been over 36 years old).
6. Valuation fees as well as legal and incidental fees apply.
7. Current Rate Payable by you – at least 9.50% p.a.
8. We very occasionally lend on Second Mortgages in special circumstances.

1).  See current rates.

2).  We would normally lend:

1. On farm properties or business properties.
2. Where we are satisfied the Borrower will have sufficient financial means to pay the interest promptly on time.
3. For a period normally of 3 years but occasionally for 2 or 4 years.
4. Interest would normally be payable quarterly or monthly.
5. The Interest Rate fixed at the start of the Mortgage would be variable annually to the current rate being charged by us on advances of a similar nature and amount. 
6. We would have the property valued by a Registered Valuer instructed by us before agreeing to the advance unless the advance was a very low percentage of the Capital Improved Value shown on a Rate Notice.
7. For investment by companies (not individuals) in residential investment.  

3).  We would not be lending:

1. On advances not secured by land such as only secured on livestock or plant.
2. On a Second Mortgage, except in special circumstances.
3. For Consumer Credit Advances where the advance is not wholly or predominantly for business purposes or investment purposes or is for individuals investing in residential property.
4. On land not in Victoria.
5. On Specialised Securities such as Petrol Stations, Tobacco Farms, Churches, Marinas, Schools, Vineyards, Nightclubs, Deer Farms, Olive Plantations, Timber Plantations and Premises with alcohol licences.
6. Where the advance would be more than 66% of the value of the land.  

4).  At the first personal interview we would need to see:

1. Copies or details of the Titles to the Land to be mortgaged.
2. A copy of the last Local Authority Rate Demand.
3. The Identification of the Borrower(s). This would normally be the originals of a  Passport, Driver’s Licence and Medicare Card.
4. A copy of the proposed Borrower’s last Tax Return  (however old), preferably with Notice of Assessment.
5. If the matter is to proceed, then we would most likely be asking you for a payment on account of the fees for the valuation we would need to order, so it would expedite matters if you brought your chequebook. We do not have eftpos facilities.  

5).  If we accept you and the above details are satisfactory and our credit checks searches are satisfactory and we anticipate sufficient funding, we will instruct Registered Valuers.

6).  If the Valuation was satisfactory, we or our solicitors will write to you with an Offer of an Advance with the necessary documentation. This letter of offer is subject to our investors signing the necessary authorities and your payment of an establishment fee.

7).  During the Mortgage we would send out Quarterly Payment Reminders for the interest in arrears to the Borrowers.

8).  A Borrower has the right to repay all or part of the Capital in amounts of at least $5,000.00 at any time during the period of the Mortgage on giving one month’s written notice and paying one extra months interest on the amount repaid.

9).  At the end of the period of 3 years if the Advance had been conducted satisfactorily we would write to the Borrowers and the Investors asking if they wished to extend the Advance for a further 3 years (our oldest advance has been over 36 years old).

We look forward to hearing from you.

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