Your risk of default is very low because of several protections in place:
- First Legal Claim on Real Estate: Unless otherwise stated, all our loans are secured by a first legal mortgage. In the event of a default and subsequent sale of the property, we have first priority in repayment and will be paid before any other creditors.
- Personal/Corporate Guarantee by Borrowers: Borrowers personally guarantee the loans, adding extra security.
- Buy-Back Provision: We partner with leading fund managers who have agreed, where applicable, to buy back loans on a specified date if required, providing investors with an additional layer of protection. Most of these fund managers oversee more than AUD 1 billion in assets under management, ensuring that our exposure to any single fund manager represents only a small portion of their overall loan portfolio.
Additionally, each loan on our platform has a 12-month contingency period that BigFundr can use to fix any repayment issues. During this period, you also earn an extra 1% interest per year.
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