100% Funding

Acuity has developed its own unique finance product for developers and new home buyers. We call it our 100% Funding facility. This product essentially provides one solution to two problems: housing affordability and the need for property developers to clear stock.

Why should homebuyers use 100% Funding?

For homebuyers, this product allows you to enter the real estate market without a deposit. We see this as the perfect affordable solution for first home buyers.

It is also a great option for investors, who are now typically required to provide a higher deposit. Many banks are unwilling to lend to property investors above an 80 per cent LVR.

The 100% Funding loan is ideal for first time buyers, property investors, new migrants and anyone eager to own their own home without waiting years saving for a deposit.

Why should developers use 100% Funding?

For developers, this product significantly speeds up the sales process and attracts a larger share of first home buyers and local investors.

As of 9 May 2017, the Australian government has limited apartment sales to foreign buyers. Under the new rules, 50 per cent of presales must be kept for Australian residents.

Our 100% Funding facility is ideally suited to developers under this new regime.

How does it work?

Acuity’s 100% Funding model allows property developers to offer buyers 100 per cent finance in the following way:

  • 80 per cent of the purchase price is secured by a mainstream lender, such as a bank, at a rate of approximately 4 per cent p.a.
  • The remaining 20 per cent is provided by Acuity Funding Lending Trust (AFLT), underwritten by the developer. This is delivered to purchasers at a rate of 10 per cent p.a.
  • The total rate of the 100 per cent loan works out to be approximately 5 per cent.
  • Developers receive a 7 per cent rate of return in their AFTL investment, paid monthly in arrears for the term of the investment.
  • The loan is secured by a second mortgage and caveat.
  • The interest rate is fixed for a three-year term, after which it will be pegged to the Reserve Bank cash rate (similar to a tracker mortgage).

For more information about our innovative offering, get in touch with Acuity Funding today.

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