Investment
Investment Options
Mortgage security type
The nature and security value determines the security type.
- Nominee Mortgage - ASL is registered as mortgagee and trustee for each investor
This is our most popular mortgage security type as majority of securities are residential and for investors not wishing to be registered on title deeds. - Contributory mortgage - a group of investors are registered on title as mortgagee
- Direct mortgage - You are the sole investor registered as mortgagee on the title to the mortgage security
- T2 Mortgage® - A second tier investor taking a higher bracket loan to asset value ratio
Interest and term option
Mortgage securities can be -
- Fixed interest rate paid to maturity
- Variable interest rate moving with the cash target rate adjusted by the Reserve Bank of Australia
- Building rate during the term of any construction period
- Fixed term or Early Term Repayment option
Interest rates will generally be higher when the interest rate is fixed, construction works are being performed or an early repayment option or interest reset option exists.
Rollover option
You have first option to continue your investment if the security is being rolled over for a further term at prevailing market rates.
Higher interest rates apply when interest rate is fixed, construction work is incomplete or an early repayment option exists.
Illustration of the loan to valuation ratio (LVR) for first and second tier mortgages.
SECURITY LOAN TO VALUE
RATIO DIAGRAM
For a larger view of the Loan to valuation ratio diagram please click here or on the diagram.