Building rate : Is a higher interest rate (usually 1% above the lower rate) paid to investors.
Contributory mortgage : A group of investors investing in a mortgage security and have their names registered on the title. Deeds to asset backing the mortgage security.
Direct mortgage - Sole investor registered on the title deeds to asset backing the mortgage security. Investors on direct mortgages have other benefits set out in the Product Disclosure Statement and Client Centre
Early term repayment option : Occurs when a borrower pays higher interest to reduce or repay the debt before maturity and or retain an interest reset option.
Fixed interest : The interest rate is fixed until maturity.
Fixed term : The secured debt cannot be repaid early unless a repayment option exists.
Interest reset option : An Interest rate premium is paid to the investor to allow the borrower to reset a current interest rate in falling interest market which is explained in the Product Disclosure Statement and Client Centre
Mortgage security description : Is issued under the terms of the Product Disclosure Statement and sets out important information you need to know before approving your investment in an ASL mortgage security.
For further information see Documentation or register an application at the Client Centre
Nominee mortgage : ASL is registered as mortgagee and trustee for each investor having an interest in the security.
T2 Mortgage® : A second tier investor taking a higher return for the upper level risk taken for early repayment and standing second in priority to repayment explained in the Product Disclosure Statement
Variable interest rate : is set at the time the mortgage security is issued and then rises and falls in line with the cash target rate set by the Reserve Bank of Australia and explained in the Product Disclosure Statement and Client Centre