First mortgage trust investments Australia
Put your money into a secure investment that’s backed by real Australian property
The Arthurmac Private Debt Fund offers risk-averse investors secure and stable investment opportunities by offering the opportunity to invest in first mortgages in Australian real estate.
First mortgages offer investors stable investments with consistent interest payments and a focus on income-generation. Independent Valuers prepare reports on each prospective property for our credit team to review. A maximum Loan to Valuation Ratio (LVR), of 70% is mortgaged against the acceptable property.
Moreover, they are a secure, low-risk investment. A first mortgage refers to the loan that is secured first in line, and is often the original mortgage taken out by a property owner.
In addition to being backed by real property by way of a first registered mortgage, this loan has priority over all others attached to the property, and is the first mortgage to be paid out in the event of default.
Unlike equity, first mortgage investments are backed by a registered mortgage on the title of a property. In the event of a borrower defaulting, registered first mortgage investors such as yourself have the power of selling the property to recoup the money you invested. But don’t worry we do all that heavy lifting for you, all you need to do is choose which mortgage to invest in.
Fixed mortgage repayments and interest rates mean that investors who lend to first mortgagees are able to enjoy a secure and consistent level of income when compared with other types of investment opportunities.
Investors at a certain point of their lives or with certain goals may be more concerned with generating income than growth. Consistent interest payments make first mortgage investment a suitable choice for these types of investors.
Unlike a pooled first mortgage investment fund, the Arthurmac Private Debt Fund is a contributory fund. You will be able to select from a number of thoroughly vetted first mortgage investment opportunities, choosing one depending on your unique goals and risk tolerance.
First mortgages vs. second mortgages
Why first mortgage investment is more secure than second mortgage investment
A second mortgage gets second priority behind the first in the event of a default. While a second mortgagee may receive a greater return, they are also in a higher risk position than a first mortgage investor.
In the event of default, any sale of the property will go towards recouping the amount owed to the first mortgage lender first, and then subsequently the second mortgage lender. If the repossessed property is sold for less than the total amount owed, the second mortgage investors may risk losing their money.
This makes second mortgages inherently riskier prospects than first mortgages, and less suitable for more conservative investors who are focused on security and stable income generation.
Secure investment for first mortgage investors
Invest in first mortgages with our contributory mortgage fund
The diverse range of borrowers who come to us includes developers and business owners that simply do not want to deal with the banks. This allows you to invest in a mortgage that perfectly fits your goals and tolerance for risk.
Secure investment opportunities for risk-averse first mortgage investors
As with any investment, first mortgage investment is not without its risks
First mortgage borrowers may still default, although this is mitigated by limiting a first mortgage loan amount to a maximum of 70% of the property’s value, using an independent valuer to assess the property and prepare a report exclusively for us.
To reduce the likelihood of this outcome, our private mortgage team carefully evaluates and scrutinises borrowers applying for first mortgages before approving any loan and recommending them to our investors.
This ensures that whichever first mortgage you choose to invest in, the borrower and their application has been thoroughly vetted by our experienced credit committee and assessed as secure, with minimal chance of defaulting.
Talk to Us
Whether you’re searching for a home loan and don’t want to deal with the big banks or looking for a stable investment to add to your portfolio, our team of experienced Lending Specialists are ready to help you.
We’re an award-winning company that goes the extra mile for our clients
That means providing the most suitable loan for each individual’s circumstance. We pride ourselves on delivering a streamlined process from submission to settlement for our clients ensuring they feel supported and informed along the way.
We have been awarded “The Most Successful Specialist Broker” in Australia 3 times over the last 8 years and a finalist in the Australian Mortgage Awards every year since 2012.