Mortgage Fund is an alternative to traditional cash and fixed rate investments, it is suitable for investors who are seeking less volatility and stable return on investment. The mortgagee (mortgage fund) will evaluate the mortgagors’ financial status to make sure they are able to repay debts when due and determine the LVR (Loan to Value Ratio) based on the house valuation.
AP Mortgage Fund are actively looking for excellent investment opportunities for the purpose of achieving maximum return to its investors. The fund adopts highly effective investment strategies, which focus on high liquidity, expert management, effective risk diversification, reduction in transaction cost and compliance with regulation and rules.
Benefits of Investment into AP Mortgage Fund:
- More stable and reliable cash flow.
- Higher interest rate compared with banks.
- Relatively small invested amount into different underlying assets which achieves risk diversification.
- More strict finance requirement leading to increase in demand for lending from other financial institutions.
- Australia’s official interest rate will keep in a relatively low position for a long time.
How to protect investors’ interests:
- The fund as first mortgagee accept physical assets (commercial, retail and residential property) as security for loan and therefore reduce the risk;
- The loan approval process as stringent as the ones of Australian four major banks largely reduce the default occurrence in the future.
- Transparent operation procedure and continuous scrutiny;
- Strict external regulations by government body (ASIC, e.g.);
- Enhanced protection of investors’ interests as adequate insurance cover in place.