A mortgage fund is a type of investment product. In Australia it is commonly in the form of a managed investment scheme (MIS) also known as a mortgage scheme or a mortgage trust, however can take other forms. It has and continues to be quite a popular investment choice for all types of investors including retail “Mum and dad” investors, sophisticated investors, wholesale investors and more recently Self Managed Super Funds (SMSF) Investors.
Our investments are backed by a registered first mortgage loan against Australian real estate. A first mortgage is a first charge over real estate owned by the borrower. If there is a Default in repayment of the Loan, the property can be sold in order to recover the Loan and repay Members.
The security property varies from loan to loan however each loan is secured over either Residential or Commercial real estate in locations across Australia.
Borrowers must have Australian real estate security, the ability to meet their repayments and a repayment strategy to exit the Loan at the end of the term. Our mortgages are catered to borrowers that need a fast and flexible solution. Short-term mortgages are more expensive than traditional finance, which is why we are able to provide higher returns to our investors.
Once an investor has signed up and is approved, they can select, invest and manage their investments via our platform and professional management staff. An investor can choose to fully fund a Loan or invest alongside other Members in a particular Loan.
The Funding Investment Trust is the legal structure behind the platform. The Funding Investment Trust (“the Trust”) is an ASIC registered (ARSN 616 185 276) managed investment scheme where members of the Trust are provided with access to first mortgage investments.
Manager: Funding.com.auPtyLtd ACN603756547, ARNo. 1239776 Trustee:MelbourneSecuritiesCorporationLtd ACN160326545,AFSL428289
Custodian: Sandhurst Trustees Limited ACN 004 030 737
You can download the Product Disclosure Statement (PDS) by clicking here.
The loan to value ratio or LVR is the maximum lend secured over the property. The LVR is specific to the individual mortgage selected by the investor however the LVR must be less than 70% of the value of the security property.
The interest from your investments will be paid monthly, into your online Funding account. From there you may choose to reinvest these funds or withdraw to your nominated bank account. Please allow for 2-3 business days for withdrawals to be processed.
During the loan application process funding.com.au and the borrower agree on a suitable interest rate based on the LVR, property location and other factors.
Why invest with funding.com.au?
Investments are secured by a registered first mortgage over real estate giving your capital protection. In the event of default, the asset can be sold to recover the principal, interest and costs.
A great way to diversify your investment portfolio by investing in real estate loans. Regular interest payments to your account.
Diversify your investment
Each investment is in a single stand-alone mortgage and the investor can diversify their portfolio by selecting and investing in multiple investments on offer.
How do I get started?
Create a free account by signing up online here.
Fund your account
Top up funds to your account. These funds will be held in trust until you select an investment to invest in.
Select and invest in investments online or via email.