The Common Mortgages Option™ is a pooled fund. This fund can only invest your money into certain cash based assets or into mortgages that meet the following criteria:
- The Primary Security is located in Australia and is secured by a mortgage registered on the Title to that property;
- Loan to Value Ratio is less than or equal to 80% of Primary Security value;
- Second registered mortgages on the Primary Security may make up no more than 20% of the total assets of the Option. All other mortgage investments shall be secured by first mortgages over the Primary Security.
- Development and Construction loans may make up no more than 20% of the total assets of the Option.
One of the significant benefits of the Common Mortgages Option™ is that you are spreading your investment over a number of mortgages rather than investing in a particular single mortgage (as with the Select Mortgages Option™).
To invest in the Common Mortgages Option™, you must obtain a copy of the Product Disclosure Statement (in the Download Centre), complete the Application Form and forward it to our office indicating you want to invest in the Common Mortgages Option™. Upon receiving your funds, we can then place the investment.