First Mortgage Investments
With first mortgage investments, your money is lent to a person borrowing against the security of a first mortgage. Monthly income is earned from the interest payments made on these loans by the borrower. First mortgages are fixed-term investments. Once you have invested in a specific mortgage the interest rate is fixed for the agreed term. Mortgage investments may allow you to earn a higher return than is available from other fixed-term investments. Returns are based on loan rates instead of investment rates. All loans are made on the security of registered first mortgages over the property.
Benefits of first mortgage investments
Higher returns than term deposits
Less volatility than the stock markets
Predictable monthly income or capitalized interest secured by a conservatively-valued property
Your capital is secured by a first mortgage against real property in Australia