Both Funds will advance business and investment loans secured by registered first mortgage over residential, commercial, retail and industrial properties.

In its mortgage lending, VMIL operates within strict lending guidelines. Our current lending products are summarised in our various product flyers which can be found in the forms section.

Significant features of the lending guidelines for each fund are :-

• loans are to be secured by registered first mortgage;
• interest rates will generally be variable in the Pooled fund and fixed in the Contributory fund;
• mortgages are to be over well located, good quality, non-specialised properties. Security properties may or may not be income producing. The following are examples of properties which are not acceptable security:-
  • property outside metropolitan or major regional centres;
  • specialised property, such as service stations, hotels, amusement parks; and
  • construction and development projects.
• prior to lending, VMIL is to obtain a valuation prepared on an "as is" basis by an independent registered valuer to determine the value of the property offered as security. Valuations are to be no more than 90 days old on the date of settlement;
• loan amounts are to be generally up to 70%, but no more than 75% of the assessed market value of the security property;
• To ensure that the borrower has the ability to meet loan commitments, VMIL requires satisfactory documentary evidence of serviceability including one or more of the following:-
  • accountant's certification;
  • current lease agreements demonstrating rental income from security property;
  • letter from employer confirming wages / salary;
  • BAS statements demonstrating revenues;
  • bank account statements;
  • loan account statements;
  • management accounts;
  • taxation returns.

Properties offered as security must also be independently valued.

Loan-to-valuation ratios are applied according to VMIL's conservative lending policies. Generally VMIL will not advance loans where the LVR is more than 70% unless the proposed investors in that Sub-Scheme expressly agree otherwise, but in any event no loans will be advanced where the LVR exceeds 75%.

Valuation Procedures

VMIL has appointed a panel of professional independent Certified Valuers, which is under regular review.

Before approving a new loan or renewing an existing loan, VMIL will instruct a Certified Valuer to determine the Market Value of the security property. VMIL requires the Certified Valuer to assess the Market Value of a security property on an “as is” basis. Valuations are to be no more than 90 days old on the date of settlement.