Prior to a loan application being reviewed by the Board, an initial assessment on the quality of the loan application is undertaken based on our proprietary credit rating model. This ensures a consistent and measurable approach to loan assessment occurs prior to any formal approval.

Borrowers are required to provide a serviceability declaration and substantiate their ability to service a mortgage. We also obtain credit history checks and secured property assessment and valuation.

The Board then combines their experience, qualifications, knowledge and skills, to apply the credit policy, approval process and checklist to all loan applications.

The Board must approve the loan, including the secured property as being acceptable for investment.

Security & conditions

No secured property or borrower is alike, and Apac subjectively considers each secured property and borrower for risk of default and may impose conditions to reflect risks specific to the security to reduce risk of default or loss, which may include a lower loan to valuation ratio, or requiring additional security.

In the case of construction or development loans, this may include additional requirements such as pre-sales and certified cost of completing the project. All loans selected for inclusion in the Fund have met our  requirements for the applicant to demonstrate capacity to service the loan.

If the purpose of the loan is to refinance other lenders, evidence of satisfactory conduct of the loan is required. The Fund may also take additional collateral security, including guarantees from the directors of the borrower and general security interests (through a general security agreement) over all the current and after-acquired property of the borrower.

These parameters vary from time to time depending on Apac’s views as to market conditions, property market cycles and other micro and macroeconomic conditions. We may change the parameters without providing notification to you.