Thank you to everyone who came along to our investor Q&A webinar on May 4. The investor team enjoyed having you along and answering your questions. If you couldn’t make it, or would like to listen to it again, you can watch it anytime on YouTube here.
We received some great questions and comments from current investors, and we’ve broken down the main takeaways:
- What is an LVR? LVR stands for loan-to-value ratio, which is the equity put into the property from the borrower compared to the loan amount required to purchase a property. Banks generally lend on an 80% LVR, meaning the borrower needs a 20% deposit. We are conservative lenders at SCP, and it is not uncommon for us to lend at 65% LVR, meaning we require a 35% deposit from borrowers.
- What is meant by a loan maturity date? Every loan comes with an estimate maturity date. This is a date attached to each loan that investors can anticipate the loan be repaid on. This is the estimated end date you see attached to each loan in the Investor Portal. However, these dates are subject to change, either through early repayment or a loan extension request. Early repayments means you could have your funds from that loan repaid to you earlier than expected enabling you to invest in another loan . For renewals you will continue to earn interest until the loan is repaid.
- What if I need my funds back? If a loan needs to be renewed, you have the option to opt out and place the loan on the Secondary Market for another investor to take over. If other circumstances require you to exit a loan while still within the original term, the Secondary Market can also be used.
- Can we advise on which loans to invest in? SCP cannot give financial advice, but we can help step you through the order process and how to read the loan details. For any specific investment advice you will need to speak to a financial adviser.
- How are loans secured? All investments come with varied elements of risk and we recommend you take time to understand them. But all of our loans are secured with a first mortgage, and we always invest with our own money first.