About The Mortgage Fund
Eastwood Securities Mortgage Fund is a conservative, non pooled, property mortgage based investment scheme. The Fund is registered with the Australian Securities and Investments Commission (ASIC) as a managed investment scheme (ARSN 146 451 792). The Eastwood Securities Mortgage Fund is designed to provide investors with an opportunity to obtain consistent returns for the period of investment and receive monthly income distributions from registered first mortgages. The Fund’s objective is to maximise investment returns from first mortgage lending while ensuring a continuous level of appropriate capital security.
The Fund offers investors the opportunity to invest in mortgages over real estate located throughout Australia. The Investment Manager, Eastwood Securities Pty Ltd has considerable experience in managing mortgage investments.
Each Mortgage is registered in the investor’s name with Eastwood noted as the Mortgage Manager. Eastwood is responsible for performing due diligence on all investment opportunities and preparing a Supplementary Product Disclosure Statement (SPDS) providing the investor with relevant investment evaluation material for each specific loan and security.
The security property will be real estate incorporating Residential Housing, Commercial Property, Retail Property, Industrial Premises and Vacant Land in Urban, Regional and Rural settings. The mortgage is registered in a government registry.
An investor may invest either as an individual (Direct Mortgage), as part of a group of investors (Contributory Mortgage) or via a Nominee Mortgage.
- DIRECT MORTGAGE – An individual invests in a single mortgage security. The investor’s name is registered on the title as the first mortgagee. Investors generally need to contribute a minimum of $100,000 to invest in a direct mortgage.
- CONTRIBUTORY MORTGAGE – Up to three (3) investors are able to contribute and join in with respetcive investment amounts to one mortgage security and all of their names are registered on the title as first mortgagees on the security property title.
- NOMINEE MORTGAGE – The Investment Manager is registered on the mortgage and signs a Trust Declaration that the mortgage is held on trust for the investor(s) named in the declaration. This form of mortgage is attractive where there are multiple investors or where the investor wishes to maintain their privacy.
- ROLLING OVER YOUR INVESTMENT – The mortgage term is often extended at its current interest rate. A Roll Over notice will be sent to the investor not less than 30 days before the maturity date. The investor can continue their mortgage investment at the interest income rate contained in that notice or elect to withdraw their investment at the original maturity date. A SPDS or Roll Over notice may be sent by email or mail to an investor.
Mortgage securities are defined by the use of the underlying real-estate security. Different types of mortgage security may be priced differently with respect to interest rate return reflecting the perceived risk in making that mortgage investment.
- RESIDENTIAL SECURITY – Residential security is property used for domestic purposes. Residential lending is also regulated by the National Credit Code. Loans made for business or investment purposes may also be secured by residential property.
- COMMERCIAL SECURITY – Commercial security includes offices, retail property, showrooms, warehouses and hotels or accommodation facilities and will have a commercial lease with an approved tenant or be occupied by the Borrower. These securities usually generate rental income to the Borrower which is matched against mortgage repayments over the term of the Loan without the Borrower having to reduce the outstanding Loan principal.
- INDUSTRIAL SECURITY – Industrial security includes factories which have a manufacturing or mechanical use or are used for industrial purposes. In some cases, these properties may have had a prior industrial use or may have had chemicals or petroleum products manufactured or stored on the premises creating an environmental issue. Any environmental considerations will be noted in the valuation and considered when pricing the Loan. Often, part of the funds advanced to the Borrower will be utilised to improve the value of the security property by removing the environmental issues.
- RURAL SECURITY – This security type is made up of properties outside the metropolitan areas. It may include coastal properties, farms, vineyards and standard residential properties in these areas.