A ‘mortgage scheme’ is a managed investment scheme that has, or that is likely to have, at least 50% of its non-cash assets invested in “mortgage loans” and/or unlisted mortgage schemes. “Mortgage loans” are loans secured by a mortgage over real property (including residential, commercial, industrial or retail property, or vacant land).
Mortgage funds are generally divided into two categories: pooled or contributory. In a pooled scheme, all the capital raised is pooled and then lent to borrowers for projects. In a contributory scheme, funds raised are lent to a specific project or borrower and investors receive the returns associated with that particular loan.
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