Loan to Valuation Ratios
Turner Securities Ltd implements maximum individual loan exposure limits to reduce potential risk of loss should it be necessary to realize on mortgage security held.
At the time of approving a new loan, the amount to be borrowed, including any interest prepaid or capitalized, must not exceed the proportions of the value of all property over which Turner Securities is to take registered mortgages, as set out below.
The maximum LVR’s for various types of loans are specified in the table below.
|Loans used for Commercial/retail/industrial||70%|
|Loans used for vacant land||60%|
|Loans used for rural use||50%|
|Loans for construction and development and where the Company isfunding that con-struction or development||Up to 70% of the end value of the development|
In determining the value of the relevant security property, Turner Securities relies on a valuation report from professional qualified valuers approved for appointment to Turner Securities valuation panel and their appointment to Turner Securities valuer panel is consented to by the Trustee.
Turner Securities Ltd will maintain at all times a minimum of 7% of Secured Note funds raised in a cash liquidity reserve in the form of a Company at-call bank account.