How do I invest?
Always seek professional advice before investing. You need to read the Fund’s Product Disclosure Statement and then complete an application form. The Product Disclosure Statement and other important information can be found by searching the Disclose Register for Midlands Mortgage Mortgage Trust Group Investment Fund OFR 11409. You can also contact the manager on 0800 870 326 or email us.
Further information and regular updates on Fund performance are available in our latest newsletter and on this website, or to view the Fund’s latest offer update on the Disclose Register as referred to above.
How much do I have to invest?
A minimum of $500 is required for the initial investment. After that, regular contributions or additional one-off contributions can be made from as little as $100.
How do I withdraw my investment?
Subject to the Manager’s right to suspend, withdrawals are required to be paid out within 90 business days of receipt of a withdrawal notice but the manager usually processes withdrawals within one week. The manager’s current policy is not to charge withdrawal fees but the Trust Deed allows for such fees during the first 2 years of your investment with a fee of 2% of the amount withdrawn for an investment of less than 12 months and a fee of 1% of the amount withdrawn for an investment of between 12 and 24 months.
Is there a Reserve Fund?
Yes, a part of the Fund’s income is allocated to a reserve fund that helps meet possible losses on individual loans. This does not have a material effect on income distribution.
Who can apply?
Anyone wanting money for residential, rural or commercial property where security is provided by a first mortgage over that property.
How much can I borrow?
This is based on individual circumstances, however you can generally borrow an amount sufficient for the interest to be between 20% and 30% of your income. A valuation of your property will be required to determine the limit to which a loan can be granted.
Lending guidelines limit borrowing amounts against property values, as follows:
- Owner occupied home loans 75%
- Farms 60% (except for dairy farms at 66.67%)
- Commercial property 66.7%
- Bare land and approved leasehold securities 50%
What monthly repayments do I have to make?
Your monthly repayments are based on the terms of your loan.
Can I make additional repayments over and above the minimum requirements?
Yes. The terms of your loan state how you can make part or full repayments.
What are the fees?
A fee of between 1.25% of the loan amount with a minimum of $1,450 of the sum borrowed is payable to Midlands Mortgage Trust on acceptance of any offer from the Fund. There are also legal fees incurred by the Fund for putting your mortgage in place and you will have your own lawyer’s legal fees to pay. View full Fees info here.
What is the interest rate?
Our interest rates are floating and dependent on our assessment of current market conditions.
Are consumer credit loans offered?
A sample of documentation for consumer credit loans can be viewed here.
Where can I get further advice?
We recommend you take independent advice from a trusted lawyer or financial adviser.