1.  What is mortgage investment?
Mortgage Investment is where an Investor advances money to a Borrower and the loan is secured by a registered first mortgage over the Borrower’s real property. The term of the loan is generally 1 year and the security for the loan may be residential homes, units, commercial property or vacant land. The Borrower pays interest to the Investor. We only lend funds for business or investment purposes.

2.  Investment Security?
This form of investment is considered secure for the following reasons:

• Elliott Harvey Securities holds a first registered mortgage over the Borrower’s property on behalf of its Investors. This ensures that any debt to the Investor has priority over all other debts even where the Borrower becomes bankrupt or insolvent.
• Select registered valuers who carry current and adequate professional indemnity insurance ascertain the true value of the property. Our panel valuers have demonstrated valuation skills practised over many years. Nevertheless, these valuations are further scrutinised and crosschecked with real estate professionals by our experienced Credit Committee members to ensure accuracy.
• Only a conservative amount of funds in comparison to the true value of the property are advanced to the Borrower. This is referred to as the ‘Loan to Value’ ratio (LVR). Our LVRs do not exceed 80% of the value of the property and are often much lower. This creates a ‘buffer’ in the event of a forced sale or repossession.
• All improved properties are insured for all risks to the full replacement value and a Certificate of Currency is required to be lodged with Elliott Harvey Securities.

3.  What return will I receive?
Over the past year, Elliott Harvey Securities investors have received between 10% - 12% per annum. The rate of return will vary from time to time due to market conditions and the type of security.

4.  How much do I need to invest?
Start with as little as $5,000, thereafter in multiples of $1,000.

5.  Does the rate of interest change depending on how much money I invest?
Definitely not! We do not discriminate between small and large investors. The one high rate of interest applies regardless of whether you invest $5,000 or $5 million.

6.  For how long are my funds committed?
Investing with Elliott Harvey Securities is relatively short-term – approximately 1-2 years. This allows our investors to take advantage of interest rate rises rather than being locked in to a low return for an extended period.

7.  What if the Borrower is late making payments?
If the Borrower is late, they must pay 6% higher than the usual interest payment per month. In certain circumstances Elliott Harvey Securities may elect to waive this immediate payment, however, these circumstances are rare. If the Borrower is more than a week late, a formal default notice is issued. Although most Borrowers quickly remedy default, we commence default procedures expeditiously to save time and protect your investment should the Borrower completely default.

8.  What if the Borrower defaults?
Elliott Harvey Securities immediately commences default procedures to sell the property at the best price that can be obtained either by private sale, auction or tender. We make every endeavour to ensure the sale price covers the original investment plus any interest owed to date of payment, default interest and legal costs and expenses. These expenses are subtracted from the sales proceeds and applied accordingly.

9.  Are there any costs or fees to invest?
There is no cost whatsoever to the Investor. The Borrower must pay all legal and loan establishment costs.

10.  Do I have a say in where my money is invested?
You have the ultimate choice. Our Specific Proposal will provide full details of the proposed loan and it is your choice as to whether you wish to participate in that particular project or not.

11.  What if the Borrower repays early?
The Borrower has the right to repay early and in these circumstances you will generally receive an extra one-month’s interest until we are able to reinvest your funds in a new loan at the prevailing interest rate.

12.  When and where is interest paid?
Interest is paid monthly in arrears into your nominated bank account.

13.  What are the risks?
It is impossible to eliminate risk. Astute investors minimise risk by managing the risk to the greatest extent possible. Please refer to our Product Disclosure Statement for details regarding Investment Considerations and Risk Management.

14.  What kind of Borrowers choose Elliott Harvey Securities Ltd second tier financing rather than go to the bank?
Our Borrowers are generally disenchanted and frustrated with the traditional banks’ inflexible lending criteria and time-consuming bureaucratic process. They may require an interest-only loan, fast settlement, the option of early repayment, bridging finance or a more tailor made short-term loan. Financiers like Elliott Harvey Securities occupy this market and will continue to do so in the future.