NON-BANK MORTGAGES MAKING A RETURN

18 Aug 2016

At the time of the GFC, Kevin Rudd made a very unwise decision to guarantee all bank deposits. This wiped out Australia’s long established private mortgage market leaving the Banks with a virtual monopoly. There are signs this alternate market is making a comeback.

For the income investor, first mortgages over income producing property have always been one of the safest investments around. With returns over 6% the yield is also attractive. For the borrower, the market now provides some negotiating edge when dealing with Banks and is normally a simpler process. The new availability of these funds is very welcome and we hope it continues to grow to pre-GFC levels.