Helpful Financial FAQs 

Balanced Securities Limited secured notes are first-ranking securities issued to each investor to secure their deposits with the company. Balanced Securities Limited will initially invest these funds in short-term liquid investments and then lend these funds to borrowers secured by first registered mortgages in accordance with the lending policy approved by the Trustee.

• The secured note is secured by a charge to an independent trustee company, which holds a first-ranking charge over the mortgages and other assets of Balanced Securities Limited, including $1 million paid-up capital and retained earnings of the company.
• Loans made by Balanced Securities Limited are on first mortgage only and are advanced up to 67% of the value of a property. An independent professional valuation is obtained from a qualified valuer on the Company's instruction to ensure that an accurate value of the mortgaged property is provided.
• Mortgage payments are strictly monitored so that, in the event of a delay in payment, appropriate steps can be implemented for the recovery. The Company's accounts are regularly audited by a national accounting firm.
• The directors and senior executives have a wealth of experience in the mortgage lending industry and are actively involved in the day-to-day loan approval process.

Interest payments can be received on maturity or monthly. Interest is calculated at the end of the day on the 15th of each month and is payable within seven days thereafter. Payment can be made either by cheque or by electronically transferring the payment directly to your specified bank account.

Secured note investments must be treated as a fixed-term investment. Similar to first mortgage investments, secured note investments can be for a relatively short term and are generally for periods from one to three years.

In the case of an emergency, it is usually possible to recover your investment before its maturity date. In these instances, a handling fee equal to 1% of the principal redeemed may apply, together with reimbursement to the company for any bank fees or taxes incurred as a result and compensation to the company for any resulting loss to it arising from movements in interest rates or like events since the investment was made.

• Approximately 30 days before the maturity date of your investment, we will advise you of the current interest rates applicable for new terms. If you wish to change the term or withdraw all or part of your investment at this time, you should advise us in writing at least 7 days before the maturity date.
• If you do nothing, we will automatically roll over your secured note investment for the same term as previously held at the applicable interest rate.

• Interest will commence from the date of acceptance of your investment, eliminating the waiting period prior to a first mortgage investment becoming available.
• With first mortgage investments, there was usually a "downtime" between when a mortgage was repaid and funds were placed in an at-call account pending reinvestment in a new mortgage. This "downtime" has now been eliminated for investors.
• Regular fixed monthly interest payments, which can be deposited directly into your bank account.
• There are no entry, account or collection fees, and all interest rates quoted are the net return. Balanced Securities Limited will also absorb all its government bank charges, such as bank account debits tax.
• A pool of mortgages offering you a diversity of security properties rather than a single mortgage securing your investment.
• The Company and its investments are regulated by the Australian Securities and Investments Commission ("ASIC") and audited by a national accounting firm.

If you are a new investor, then under the provisions of the Anti-Money Laundering and Counter Terrorism Act 2006, we are under a legal obligation to request from you reliable and verifiable documentary information to confirm your identity. For details of the informational requirements, refer to page 37 of the prospectus.

After reading the contents of the prospectus, complete the attached application form and return it together with your cheque in the enclosed reply-paid envelope. Funds can also be remitted  by electronic bank transfer. Refer to page 38 of the prospectus