Banksia Mortgage Fund
- How long has the Banksia Mortgage Fund been in operation?
- What is a Mortgage Investment?
- How do I invest?
- What information does the investor receive?
- Is the investment secure?
- Is there a minimum investment amount?
- What is the term of the investment?
- What is the review date?
- Are there any fees or charges?
- How is interest paid?
- When is interest payable?
- What does the term "Interest Underwritten" mean?
- Am I able to redeem my investment before the review date?
- Who can apply to invest?
1. How long has the Banksia Mortgage Fund been in operation?
The fund was registered with ASIC in 1999.
2. What is a Mortgage Investment?
In a mortgage investment with the Banksia Mortgage Fund, an investor's funds are placed into an approved investment loan secured by a mortgage over legal interest in property situated in Australia. Banksia Mortgages Limited (BML) is the responsible entity for the fund and it manages the investment on behalf of the investor.
3. How do I invest?
You will need to obtain a current Product Disclosure Statement (PDS) of the Banksia Mortgage Fund, available from any Banksia Group branch, or electronically via our Web site www.banksiagroup.com.au. Then simply contact us to discuss a suitable investment and obtain an Application Form, which will contain the details of the agreed mortgage investment. Your investment will commence upon receipt of your signed application and cheque, or on the next business day if received after 4.00pm.
4. What information does the investor receive?
Prior to the investment being made, details of the loan interest rate, the total loan sum, the term of the loan, the investment security and the valuation amount are provided and detailed on the Application Form. A copy of the valuation of the mortgaged property is provided. When the investment is processed a Certificate of Investment is issued. The Certificate of Investment details the amount invested, the interest rate, the review date and details of the borrower, the total loan amount, the valuation amount and particulars of the security for the investment.
5. Is the investment secure?
While your investment is not capital guaranteed, it is secured against specific mortgage securities. Banksia has a conservative lending strategy with strong assessment and prudential standards designed to minimise capital risk.
6. Is there a minimum investment amount?
A minimum investment in the Banksia Mortgage Fund is $10,000. Subject to company discretion, lesser amounts may be accepted.
7. What is the term of the investment?
The investment term is the period of time between the commencement date of your investment and the review date. Terms are fixed for the particular mortgage scheme and generally run for a two year period.
8. What is the review date?
The review date is set out in the Application Form and is the date by which a mortgage loan is reviewed. Generally this is also the date by which you will receive a new Application Form (and a current Part 1 PDS if you have not already been provided with one) if the relevant loan is to be renewed. It is the date on which you may redeem your investment or instruct us that it may continue for a further period on the terms advised.
9. Are there any fees or charges?
There are no establishment charges or exit fees (on maturity) which apply to any investment pursuant to the current PDS. The Management Expense Ratio of the Banksia Mortgage Fund varies between particular mortgage schemes. Full details of the Management Fee for the Fund are set out in the PDS.
10. How is interest paid?
The preferred and most secure method for payment of interest on first mortgage investments is via direct credit to your nominated bank account.
11. When is interest payable?
Dependent on the mortgage you invest in, interest is payable monthly or quarterly.
12. What does the term "Interest Underwritten" mean?
Timely payment of interest on your investment until the date of the review is guaranteed by BML. Interest beyond the review date may not be underwritten by BML if the mortgage loan is in default or the borrower has not concluded the loan renewal procedure. In these circumstances, BML may exercise its discretion to continue to underwrite the payment of interest.
13. Am I able to redeem my investment before the review date?
In general early withdrawals are not available during the investment term. In cases of extreme hardship, Banksia may grant early withdrawal of funds prior to fulfilling the full term of the investment. An early redemption penalty may apply in such cases. For further information Banksia recommends you read a copy of our current PDS.
14. Who can apply to invest?
Investments can be made individually or by combinations of persons jointly, partnerships, companies, trusts or other incorporated bodies.