FUNDING PARAMETERS
While Quantum Credit’s finance solutions are tailored to each borrower’s specific set of circumstances and unique requirements, generally they all have the following characteristics in common:
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Loan Term - maximum loan term of 24 months for first mortgage, 6 months for second
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Loan-to-value ratios - LVRs are calculated by expressing the amounts borrowed (including any fees capitalised to the loan) as a percentage of the value of the security properties offered. The maximum LVR’s are as follows:
- Residential property - up to 80% in metro areas
- Commercial property - up to 70%
- Rural property and vacant land - considered case by case but will not exceed 60%
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Interest rates - due to the short term nature of the Quantum Credit loans, interest rates are fixed and payments are interest only. Interest is calculated on a daily basis and charged to the loan account at the end of each month
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Payment frequency and method - all interest payments are collected by direct debit via Quantum Credit’s Integrated Banking Direct Debit System. Payment frequency options available are weekly, fortnightly and monthly
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Fees - commission, mortgage management and other origination and administration fees are generally raised in upfront, lump sum amounts and capitalised to the loan amount
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Application process – whether a borrower forms a relationship with Quantum Credit directly or via a broker or other third party, in all scenarios there are a number of documents that require completion and assessment before a loan can be settled. Some of these documents are available on our
apply for finance page
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Valuations and acceptable security - all Quantum Credit loans are secured by a mortgage that constitutes a first and/or second ranking charge over freehold land. Properties are deemed acceptable according to specified criteria. Only valuations from licensed and registered valuers will be assessed by Quantum Credit
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Business loans only - Quantum Credit cannot consider loan applications from individuals requiring finance for private purposes. Loans can only be extended to companies and to individuals who are acting as trustees or who require a loan for business purposes
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Loan exit parameters - Quantum Credit loans are always short to medium term and are only advanced upon the submission and acceptance of a clear “loan exit plan” to repay the loan at expiration of the loan term. Typical loan exit strategies and assessment documentation required are:
- Sale of the security property itself – copy of listing agreement and internet listing (if applicable), with RP Data report to support realistic listing amount.
- Sale of property (other than the security property) – as above, with a caveat to be lodged against the property to secure payment to Quantum Credit out of the settlement proceeds
- Refinance – details of the lender and the finance applied for, or to be applied for, are required. Quantum Credit performs an internal assessment of whether the borrower is likely to qualify under the lender’s credit parameters. Where applicable, an indicative finance approval letter from an incoming lender may be required
- Other sources of funds – tax refunds, trust distributions, sale of business proceeds, other future payments – with documents to evidence these sources of funding
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Documentation – the identity of the lender (or lenders) to any loan will be determined according to the unique loan scenario and then recorded in the loan documentation as required. Depending on the loan and security structure, the lending parties could include Quantum Credit, Impresta, other Group companies or institutional/corporate/private investors (either named or by nominee)
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Caveat loans - while the Quantum Credit practice is to rely upon registered first and second mortgages for loan security, there are occasions where a caveat will be used to facilitate a quick settlement. The opportunity to use a caveat is assessed on a case by case basis.
