Product Suitability
Comparing products and suitability to clients
The different loan products are explained in more detail below. Check the suitability guide for each finance
product and contact one of our finance managers for additional information or consult your financial adviser
for assistance. Click on the ASL Finance Product Comparison Chart for a list of options available for each product.
Finance Products
Principal and Interest finance - FLICKfinance™
Client Suitability
- Clients seeking to have a Principal reduced debt over a period of time with flexibility to adjust
Principal repayments during their working lives to suit their circumstances. For example
reducing repayments when cash is required for education, healthcare and increase repayments when surplus
income from bonuses, wage rises and inheritance.
The basics
- Fixed or variable interest rates
- Borrower sets own Principal repayment amounts
- Amortisation period of 25 years
- Available in ASL Standard®, ASL Premium®
- Compliance and establishment fees apply
- Repayments can be adjusted manually once a year by the borrower (at annual review date)
at no charge. Further changes to loan repayments can be made, however this is subject to a
$150.00 loan variation fee
- No rollover fees
- Increase/suspend/extend on annual review
- Repayment options available
- No exit fees
Benefits
- Flexibility to set and vary your own repayment schedule
- No rollover fees or exit fees
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking a prncipal and interest finance facility.
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ASL Allegro®
Client Suitability
- Residential property owner(s) • Aged 60+ years • Investment fund alternative accommodation,
personal needs, additional income or other person needs
- Retain the maximum benefits of capital growth on equity
The basics
- ASL Allegro®allows housing to provide a source of income and capital growth a natural hedge
against inflation in retirement.
- ASL Allegro®is not a reverse mortgage as interest charges are lower and no negative equity guarantee applies.
- Family home can be used as a residence or provide a rental income
- Client retention ratio is 60% equity/ 40% debt in their residence
- Actuarial life expectancy tables are recommended
- Independent financial and legal advice is required
- Interest is capitalised half yearly for the life of the loan so you do not personally pay the interest until the loan ends.
- Repayment options permit repayment before maturity. Maturity is when you require repayment or where LVR exceeds two thirds of value.
- Interest rate is the variable interest rate applicable to new loans when interest is capitalised.
- Securities can be swapped or added to other securities e.g. retirement village units of equivalent value.
Benefits
- ASL Allegro®rates are blue chip interest rates
- No interest payment during life of the loan
- Additional funds can be borrowed within the above parameters
- You retain control of the security
- Low interest rates
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking an Allegro finance facility.
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Associations
Client Suitability
- Incorporated associations • Foundations • Sporting clubs • Community group • Limited liability
- Principal reduction option
The basics
- Association, church, foundation or other community organisation wishes to purchase property or
refinance security for use by the community or members of the foundation or association.
- Funding is to be paid from community, donations or sources based generally on good will
of members and community.
- Security being funded will normally comprise of a religious hall, community centre, office building or residence.
- Up to 60% LVR with non recourse borrowings by ASL beyond the assets of the client i.e. office
holders are exempt from guarantees to ASL.
- Purpose of fund must be for the general purposes permitted by the client Constitution.
- Interest rate reduction benefit on lower LVR securities.
- Standard rollover available as a pre approved client.
Features
- No financials required for loans.
- Lower interest rates may apply following review of first term facility performance.
- Additional funds can be obtained to purchase or increase property value.
- Interest can be capitalised if supported by a Financial Advise
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking an association finance facility.
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Business
Client Suitability
- Small to medium enterprises (SME) • Self employed • Professional or trade
- Prefers freedom of financial management • Has real estate security • Requires reliable stable finance facility
The basics
- Finance facility secured to two third's value of real estate being either client residence, business
premises occupied by client, other ASL approved security.
- Additional funds available for improvements to increase security value.
- Security offered by a third party requires independent legal and financial advisers.
- Up to 66% LVR net of GST [additional security can be included to increase LVR].
- Current effective commercial lease required if commercial security.
- GST allowance on resale if the GST exemption does not exist.
- Interest rate reduction benefit on lower LVR securities.
- Standard rollover available as a pre approved client.
- Personal guarantee required of corporate directors and debenture not required for assets.
when finance facility is less than 60% third security valuation.
Features
- No financials required for loans below two third valuation.
- Evidence of ability to make payments required for funds advanced above two third valuation
- No Lease required [but may impact on valuation]
- Adverse financial circumstances of client have no impact on security unless non performance of finance facility
e.g. non payment of interest occurs.
- Lower interest rates may apply following review of first term facility performance.
- Additional funds can be obtained to purchase or develop other investment properties.
Benefits
- Interest rate reduction on lower LVR.
- Interest can be paid in advance or capitalized if supported by a Financial Adviser depending on LVR adopted.
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking an Allegro finance facility.
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Construction
Client Suitability
- Registered builder or owner builder • No presales required • Funds based on completed LVR
- Progress payments credited to you or your borrower account 24 hours after site inspection and approval
- Monetary incentives for fast turnaround
The basics
- Funding can be two staged for land acquisition then construction
- Plans and specifications
- Maximum LVR is 663% completed valuenet of GST [additional security can be included to increase LVR]
- Retention sum for part or all building works
- Retention sum progressively advanced on valuation, QS or Architect certificates
- Pre sales not required
- Interest rate reduction benefit on completion of building works
- Progress payments paid to your nominated account or contractor within one business
day of site inspection and approval
- Standard ongoing finance available as a pre approved client
Features
- On site visits from the ASL representative in whom you can confidently rely for assistance with speedy approvals
- Fast progress payments [inclusive of GST] paid out
- Progress payments booked by you, to suit your time frame
- No pre sales requirement
- Better cash flow during construction with quarterly interest paid in arrears
- Lower interest rates apply when construction is completed
- Interest earned on your retention sum and credited to your account.
Benefits
- Access to skills of a professional lender to SME builders for over 80 years
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking a construction finance facility
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Domestic Credit
Client Suitability
- Employed • Self employed • Debt consolidation • Early retirement super tax benefit
- Second home buyer and lower LVR • Bridging finance • Alternative finance package is ASL AllegroTM
for finance over 60 • Restructuring assets for future
The basics
- Predominant purpose of the credit facility is for domestic purpose as defined by Credit Code legislation
- Client should be employed otherwise a Financial Adviser will need to certify - credit facility is in your
best financial interests, repayments can be met and capacity to either repay the debt or will realize the
security on maturity.
- Credit facility must be in the name of the registered proprietors and intended for domestic purposes
as defined by prevailing credit regulation
- Credit facility limit is 66% of property value. Additional security can be used for additional finance
- Term of loan is up to 3 years. Credit facilities can be rolled over for further terms.
- Repayment options R1, RR and RPR available at any time after first 3 months or on any rollover date. The client sets the repayment amount in the RPR which is paid monthly with interest.
- Increases during term of the credit facility are available
- Securities can be switched or added to.
Benefits
- Client sets the amount and their own time frame to repay the credit facility based on their personal circumstances.
The repayment amount can be revised on the renewal date for the facility.
- Interest rates can be either fixed or variable. The credit facility will be automatically rolled over for a pre-approved client for a nominal roll over fee at the prevailing interest rate.
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking a domestic credit finance facility.
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Equity Finance
Client Suitability
- Legal interest in freehold security • ASL mortgage security • Limited term or rights to occupy • Ready market
- Finance for acquisition, business, investment or maintenance purposes
The basics
- Client owns a limited title to use land or property affixed over land eg: marina, leasehold snow resort cabin or ASL mortgage security.
- Client owns shares in a company which own land on which is a building and the shareholding permits the client
to occupy the building.
- Client is financed with an ASL equity finance facility to reflect the longevity of their equity in ownership
of title and its end life value
- Maximum LVR is 60% reducing value of security
- Partial repayments of debt required to reflect reduction in value of security supported by periodic valuations.
- Interest can be paid in advance or capitalised
- Debt reductions can be paid by minimum amount or higher amount if required by client
Features
- Specialist finance for marinas, share owned properties, mortgage securities managed by Australian Securities Income Fund and other securities that fall within this unique category for finance.
- Recognise that land held assets can be financed with appropriate risk management making the asset more readily marketable by other clients.
- Frees up client funds for other investments whilst earning an income on an asset that is producing a steady income flow and in some cases is appreciating in value despite having a nil end life.
- Client determines any amount above the minimum repayment capital
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking an equity finance facility.
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Investment
Client Suitability
- Investor all ages • Property, share or other investment purchase • No capital repayments required
- Potential for interest and fees to be tax deductible • Capitalised interest option
The basics
- Commercial, industrial and retail real estate for rental or owner occupation
- Residential real estate intended for residential tenancy
- Predominant purpose is to invest funds to buy real estate or other investments
- Additional funds available for improvements to lift value of security
- Negative or positive gearing
- Up to 66% LVR net of GST [additional security can be included to increase LVR]
- Current effective lease required if going concern
- GST allowance on resale if GST exemption does not exist
- Interest rate reduction benefit on lower LVR securities
- Standard rollover available as a pre approved client
Features
- No financials required for loans below two third valuation
- Evidence of ability to make payments required for funds advanced above two third valuation
- No lease required [but may impact on valuation]
- Adverse financial circumstances of client have no impact on security unless non performance of finance facility
e.g. non payment of interest occurs.
- Lower interest rates may apply following review of first term facility performance
- Additional funds can be obtained to purchase or develop other investment properties
- Interest can be capitalsed if supported by a Financial Adviser.
Benefits
- Uninterrupted management of an investment security with potential for capital growth whilst income can be geared
positive, neutral or negative depending on LVR adopted.
Disclaimer : This general information is limited and clients should seek legal and financial advice before undertaking an investment finance facility.
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Strata Finance
Client Suitability
- Body corporate • Strata or Stratum title • Company share • Residential or commercial building
- Interest only • Infrastructure or maintenance works • Limited directors liability
The basics
- The building must have a registered body corporate or company share owner.
- Common property including common walk ways, entrance, lifts etc but exist and appear
on the plan of subdivision for the building
- The body corporate constitution must have the power to borrow and right of indemnity from owners
- Cost of building works required to be approved by building surveyor, valuer or quantity surveyor
- Total plant and equipment must not exceed 10% LVR of the total building value
- The loan is to be repaid over a term of 3 to 10 years at a variable interest rate
- Repayment options available for body corporate to offer to owners seeking a discounted debt payment
for immediate payment
- Interest can be capitalised up to one year
- Directors of body corporate are entitled to indemnities
Features
- Replaces sinking funds or calls on owners to make significant contributions for immediate works
- Encourages forecasting of building works and sensible financing of the works
- Reduces immediate financial burden on building owners to find cash flow to fund major building works
- Improved use of assets of body corporate and gives investors the opportunity to offset tax depreciation
concessions on new plant against actual payments resulting in neutral gearing potential
Disclaimer : This information is intended as general information and clients should seek legal and financial advice before undertaking a body corporate facility.
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Trust
Client Suitability
- Property trust • Super fund • Limited liability • Non recourse funding for investment
- Fixed interest and fixed term • Realisation or asset retention scheme
The basics
- Property trust with superfund investors prohibited from borrowing
- Trust requires a non recourse loan
- Fund will be positively geared to meet interest payments
- Maximum LVR to not exceed 55% LVR
- Interest can be capitalised up to one year with LVR to not exceed 60%
- Purpose of fund described in the Constitution or Trust deed to hold property for investors as an investment only
- Trustee entitled to an indemnity from the trust assets features
- Board of Trustees or directors recommend the investment of real estate
- Funds required for acquisition or refinance of land held by trust
- Any development program not evident on valuation to be submitted to ASL with application for approval
- No guarantees
- Competitive interest based on LVR and location
- Charge over assets of trust to secure payment of debt
Benefits
- Source of funds for property trust with no recourse against the trustees or directors
Disclaimer : Superannuation funds have a general prohibition against borrowing or investing in a trust which has an indemnity against the super fund. In certain cases the super fund can invest in a property trust where the liability of the fund is limited to assets of the fund and not the assets of the super fund. ASL recommends you seek your own tax advice.
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