The Reserve Bank of Australia cut the cash rate by 25 basis points in May 2015 to a new record low of 2.0%, aiming to bolster growth and further lower the Australian dollar. Low interest rates are acting to support borrowing and spending, and credit is recording moderate growth overall, with stronger lending to businesses of late.[1] While this is great for those looking to borrow money, it is terrible news for those seeking a good return on their cash investment.

The big four banks are all currently offering term deposits at a rate of 2.6% p.a. for 12 months. In the previous twelve months the rate of inflation has been 1.4%. Those with self-managed super funds are coming off term deposits of 7.5% to find the return as dropped by a whopping 65.5%. Some SMSFs are now not generating enough income to fund the pension being paid to the members.

At Australian Mortgage Fund, we are in the business of making our Members’ money work harder by providing Members with regular returns secured by first registered mortgages over real property. We currently have investments available that are returning Members 9% p.a. See Investment Opportunities at www.amfl.com.au/investment-opportunities.php

Australian Mortgage Fund operates a new type of Mortgage Fund that allows the members to keep control of their investments. Gone are the days where your funds are pooled into the Manager’s trust account and invested as and how the directors saw fit (with the possibility of prioritising their own interests above their Members’).

At Australian Mortgage Fund we understand that Members are the core of the business, and they are treated accordingly.  After providing Members with detailed information on a particular mortgage investment, we allow the Member to assess the investment and make an informed decision as to whether they would like to contribute. Members only invest in mortgage investments that are consistent with their own investment strategy and comfort level.

The even better news is that each Member’s contributions to a particular Mortgage Investment is in a standalone mortgage and cannot be affected by any other mortgage or investment.

The directors of Australian Mortgage Fund have over half a century of combined lending experience and are available to assist you with any questions you may have.

Instead of accepting the returns currently offered by the big banks, why not look to make your money work harder. Email info@amfl.com.au or call us on 1800 263 263 to find out how.

[1] RBA l Rida Husna