9th May 2007
The Reserve Bank last week, at its regular meeting, decided to keep Official Rates on hold at 6.25%. This is broadly
good news for the Australian economy and means less stress in the near term for borrowers' repayment capabilities.
*LENDING CRITERIA PROTECTIONS*
The La Trobe Australian Mortgage Fund's experienced team selects mortgage investments for the Fund using conservative criteria
to protect your investment:
- The Fund holds first mortgage security over most loans (which gives the Fund first claim over a
property if the borrower defaults)
- The loans must not exceed 80% of the value of the property or 80% with mortgage insurance, and are
typically much lower than that. The average LVR is 59%.
- The borrower(s) are to demonstrate that they can meet loan commitments.
- Valuations obtained are carried out by a qualified and independent valuer, and the valuation must not be more
than three months old at the time the loan is made.
- Perhaps the most important, and unlike some other mortgage funds, we have a limited exposure to risks on
property developments. Money invested in the La Trobe Australian Mortgage Fund is secured by existing property and the
Fund aims to achieve an exposure of up to 15% on development projects.
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Head of Funds Management
t +61 3 8610 2811
Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.
La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.
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