About the Loans
All loans will be secured by registered mortgages and/or caveat.
The LVR (loan to value ratio) will vary, but the ratio will be fully disclosed in the SPDS. The maximum LVR will be 80% of the sworn valuation obtained by Australian Mortgage Fund.
All loans will have a business purpose and as such they will not be subject to the National Consumer Credit Code. The Code imposes severe restrictions on lenders, and gives the consumer numerous rights if they encounter difficulty in repaying the loan. Business loans have no such restrictions, allowing investors more certainty of quick proceedings to recover funds in the event of default.
The investor can chose which loans they wish to contribute funds. As fund manager, Australian Mortgage Fund will source and manage loans, but the investor makes the decision of where funds are invested.