In Australia, all bank and corporate non-bank lending is done on the basis of full recourse to the borrower. Full recourse lending on property in Australia,combined with a conservative loan to value ratio of circa 70%, makes the probability of full loan recovery very strong. Loans to borrowers are supported by borrower guarantees and, in many instances, an additional cross-collaterised property mortgage.
All property lending in Australia is underpinned by a fresh valuation at application by a registered valuer of the lenders choice.
Ability to Service the Loan
All borrowers, regardless of the type of the loan (e.g. residential development, commercial property, land development etc) must demonstrate the ability to both service the loan with interest and to repay the loan. Interest can be paid by way of monthly payments or capitalised into the loan. The borrowers of loans on commercial properties with leasing tenants are required to give evidence of these tenancies being registered as real leases.
First mortgage lending documentation is relatively standard across Australia and leaves no doubt to any party to the loan of the enforceable status of
Note: loan documentation, lending practices and security is pretty much identical in New Zealand.
How it Works
- The banks and traditional lending institutions have dramatically reduced their exposure to financing residential, commercial, construction and
- We receive loan applications from credit-worthy borrowers and our network of accredited brokers and referrers.
- We thoroughly screen these applications and email the best of these loan investment opportunities to our registered investors for consideration.
- Investors choose which individual loans to fund then receives monthly interest payments.