Mortgage loans in Australia are something Credit Connect Capital Ltd know all about. Indeed, the Credit Connect Capital team has more than 50 years’ experience in mortgage lending, property development and fund management.
We tend to think of mortgages as something we get in order to buy a property, and then spend many years paying off! But a mortgage is also seen as collateral, and can be used to benefit not only the property owner, but investors, too.
This is something that Credit Connect Capital specialises in. A public company holding an Australian Financial Services License (AFSL), CCC operates a mortgage and property fund, providing a superior service to both investors and borrowers.
Range Of Loans
Credit Connect Capital offers a range of loans to borrowers, from short term loans ($50,000 to $10,000,000) to residential loans ($50,000 to $10,000,000), commercial loans ($50,000 to $50,000,000) and construction and development loans ($100,000 to $50,000,000).
To get a loan, the borrower must be able to secure it with a registered mortgage over his or her Australian real estate.
With that transparency and security in place, Credit Connect Capital can then offer safe, high return investment opportunities to its clients.
In short, the collateral of that initial mortgage has now provided a range of financial opportunities for both the borrower and the investor. This is a smart way of using that mortgage.
Traditionally, people secured mortgages and other loans through a bank. And for a long time, it was Australia’s big four banks that attracted the bulk of the customers. That is changing quite dramatically.
The banks have been coming under fire of late, with announcements of huge profits not quite tallying with the offers they are making to their customers. Indeed, they have faced a backlash from both customers and politicians after refusing to pass on the full benefit of the recent interest rate cuts.
Trusted By Charities
Credit Connect Capital Ltd operates the Credit Connect Select Fund, a contributory mortgage fund, which gives its investors access to secure, high return mortgage investment opportunities. These investors include charities and religious groups, corporations, public and private superannuation funds, sovereign wealth funds, high net worth individuals, private loan lenders and family offices.
It’s clear to see, then, that Credit Connect Capital is being seen as a very sound alternative to the banks, for both mortgage and investment purposes.
Clients can invest from as little as $5000, and can choose from an array of diverse mortgage investment opportunities.
For those wishing to borrow money, Credit Connect Capital Ltd offers interest-only 1st and 2nd mortgages, for business and investment purposes.
Contributory Fund Versus Pooled Fund
Whether working with a private borrower, a mortgage broker or a professional seeking funding for their client, Credit Connect Capital has many solutions to make it easy, flexible and fast, as long as the borrower can secure the loan with a registered mortgage over their Australian real estate.
Secured first mortgages allow the investor more choice, and can be over residential, industrial or commercial properties, or vacant land. The key to success is ensuring the LVR – the Loan to Valuation Ratio – is below 70%. If you look at Credit Connect Capital’s investment opportunities, you’ll notice they are currently 55% and 63%.
The typical length of the mortgage is between one and two years, and the rates of return on offer start at 6%.
Security For Investors
An important difference between Credit Connect Capital and some other fund managers, is that Credit Connect is a contributory mortgage fund, not a pooled fund. This is an important difference if you are an investor.
With the fallout from the GFC, pooled mortgage funds were the hardest hit, and many large pooled schemes were unable to survive the impact.
The problem was with pooling large amounts of investors’ money into the one fund. A contributory mortgage fund comprises multiple schemes, and as the investor you know specifically were your funds are being invested.
Take Control Of Your Finances
Contributory mortgage funds give the investor the opportunity to take control of their investments, and choose the particular scheme that most appeals to them. For example, they may choose to invest in certain geographical markets, such as Sydney. Or they might choose only loans with an LVR of less than 70%.
With some schemes offering returns of up to 8% per annum, it’s no surprise that contributory mortgage funds are extremely attractive to smart investors, and those with self-managed super funds.
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