The Direct Mortgage Managed Investment Scheme is a mortgage scheme that allows you to invest in a specific first mortgage loan. Loans through the Direct Mortgage Managed Investment Scheme may comprise of one investor or be syndicated with multiple investors. All loans are secured by a registered first mortgage over real property.
Suitable for investors seeking a fixed rate of income over a fixed term that is higher than cash and term deposits, the Direct Mortgage Managed Investment Scheme is available exclusively through the Tidswell Master Superannuation Plan and the Tidswell Investment Plan.
Before investing in a specific first mortgage loan you will be given a Supplementary Product Disclosure Statement (SPDS) prior to the loan being settled, which provides full details of the loan. You have the right to refuse any particular first mortgage loan if you are not comfortable with the terms and conditions of the loan or the borrower.
At the end of the term the loan is discharged and the proceeds are paid in accordance with your instructions. Borrowers often seek an extension of their loan beyond the original term and, in these situations, approval for the extension and any amendments to the terms and conditions of the loan must first be obtained from all investors. Loan extensions are generally only offered where the borrower has performed satisfactorily or interest is being prepaid.
| KEY FEATURES | |
| As at 31 March 2017 | |
| Fund Size | $13,452,000 |
| Interest Rate | 8.75% to 11% |
| Maximum Term | 12 months |
| Maximum Loan to Valuation Ratio (LVR) | Residential Property 75% Commercial or Industrial Property 67% Rural Property 55% |
| Management Costs | 0.50% pa |
| Distributions | Quarterly |
Interest Guarantee
Tidswell provides an interest guarantee, where, should a loan go into default, borrower interest payments will be guaranteed for a period of 6 months from the date a loan goes into default.
To improve the disclosure of information about mortgage schemes, the Australian Securities & Investments Commission (ASIC) requires operators to provide information about specific benchmarks and apply disclosure principles. Information about these benchmarks and disclosure principles as they apply the Direct Mortgage Managed Investment Scheme is outlined in the latest Continuous Disclosure Notice.