The prime benefit of these loans is that it enables the borrower to complete important works on your building now rather than wait for funds to be accumulated over an extended period of time from each owner during which time the cost of rectification may escalate substantially.

As a result owners can enjoy the benefits of the works being completed and avoid any potential legal liability or substantial increases in insurance premiums together with the imposition of higher insurance premiums and caveats imposed on the insurance cover requiring the borrower to have the
specified works undertaken by a specific time after which the insurance may be cancel the policy if the work is not completed within that time period.

As a result these loans provides the additional freedom to have important capital works to be undertaken immediately and the owners save the cost and inconvenience or in some cases the worry of not being able to raise the necessary funds in a timely manner money by raising a special
levy into the capital works funds which some lot owners may not be able to finance when needed by way of a special levy and the borrower only pays for what you use when you use it on a drawdown as required basis.

A loan is generally used to pay for building works which improves the value of each unit and/or prevents the value of each unit deteriorating. Once taken it becomes an ongoing obligation of the borrower which any prospective purchaser will take into consideration, balancing the characteristics of the property and the amenities of the building against the value of ongoing levy repayments.

The owner at the time that a levy is due and payable has the obligation to pay that levy. If you sell your unit, you will be responsible for all levies due and payable up until the time of sale at which time the purchaser will take over that responsibility.

The loan can be repaid at any time. Additional fees will only be charged if there is a fixed interest rate that needs to be broken.

The minimum amount we will lend is $100,000. The maximum amount is negotiable.

The only cost for a loan is an application fee of $600 which is payable once approval has been given. This is entirely refundable if the loan is not approved.

Beyond this there are no setup fees, line fees or unused limit fees. You only need to pay interest for the funds that you actually draw after you draw them or if a loan is repaid early during a fixed interest rate period, or if there is default on the loan.

In the event of a default we will contact the borrower normally through the manager to discuss the appropriate course of action to address the default.              
Should hardship exist and the borrower is residential then the National Consumer Credit Protection Act will apply (hardship is dealt with on a case by case basis). In cases where an borrower fails to communicate and no resolution is achieved legal action would be taken for recovery as a common law debt.

One option is to not do anything at all but this may risk the value of the property decreasing or even injury from deteriorating structures and the cost of rectification escalating substantially in a short period of time due to the deterioration of the construction components of a building.

The other option is to raise a special levy which is often not a favourable or affordable choice for owners.