MINIMUM LOAN

$50,000.

MAXIMUM LOAN

$2,000,000. 
The maximum loan amount is tiered to the size of the fund from time to time.

LOAN TERMS

3 months – 5 years.

FACILITY TYPES

Our mortgage loans are either fixed or variable interest rate facilities, with payments usually interest only in nature.  Principal is to be repaid at the expiration of the loan term.

There may be instances where it is deemed appropriate for the loan principal to be reduced during the term of the loan.  In these instances a structured repayment term will apply.

SECURITY

Security for the loan will consist of a registered first and or second mortgages only, over acceptable real estate in the Commonwealth of Australia. Guarantees of directors are generally required if the borrower is a company.

ACCEPTABLE REAL ESTATE SECURITY

The types of real estate we regard as acceptable security include selected residential, commercial, retail and industrial property, which is located in metropolitan areas of all major capital cities throughout Australia and selected regional areas.

Specialised property such as; petrol stations, entertainment venues, land, rural and other special use premises will be looked at on a case by case basis.

Lend Australia reserves the right to reduce the loan to valuation ratio in certain circumstances.

LVR’S

 Up to a maximum of 80% of the market value of the property as determined by an independent professional valuer.  The valuer will be instructed by Lend Australia.
 For selected rural properties that are deemed acceptable, the maximum advance would be up to 65% of valuation. 

Note: Lending ratios may change based on the assessed risks at a particular time and real property market conditions.

INTEREST

Interest on all loan facilities is payable monthly in advance.  Payments from borrowers are to come via direct debit from the borrower's nominated bank account.

An interest rate will be determined upon approval of the loan facility and held for the period until settlement.  Lend Australia will not extend an interest rate risk to its members on loans that do not settle promptly after approval and acceptance.

FIXED RATE LOANS

If the interest rate is fixed for the term of the loan, the loan will also provide the investor with a fixed rate of return for the term of the investment.  If the loan is repaid in part or in full prior to the loan maturity, then the borrower will be required to meet associated costs, including administration and discharge fees, as well as an early repayment fee calculated by the lender at the time of repayment.

Generally, this fee will equate to the greater sum of either three months additional interest or the rate differential between the mortgage rate and the reinvestment rate at the time of repayment, for the unexpired period of the loan.

LOAN FACILITY COSTS

A minimum loan facilitation fee of 1.0% (plus GST) of the amount of the loan is payable to Lend Australia.  At the commencement of the loan the cost of the independent professional valuation is borne by the borrowers.

The borrowers will also be required to meet the legal costs of the mortgagee and pay all titles office registration fees, government stamp duty and any other associated costs in setting up the loan facility.

ASSESSMENT

We require the following information when assessing a mortgage loan application;

 A statement of assets and liabilities of each of the borrowing parties.
 A statement of income evidencing the borrower’s capacity to service the proposed interest commitments.  This may take the form of a signed lease agreement, financial accounts, or an income statement prepared by the applicant's accountant.  Lend Australia will determine the applicant requirements with respect to the individual application.
 All applicants are required to sign appropriate Privacy Act Authority forms, authorizing Lend Australia to undertake credit checks.
 All applicants are required to sign a declaration confirming that the purpose of the loan is for business or investment purposes.
 A sworn valuation over the property(s) offered as security prepared by a Lend Australia appointed valuer unless a municipal valuation is acceptable.
 The solicitor for Lend Australia will document the loan and attend to settlement and registration of the mortgage; and other relevant documentation.