Still have questions?

The opportunity to invest in a different asset class is the one of the biggest benefits for investors. This coupled with the flexibility of deciding your own investment strategy and choosing the Borrower’s criteria, interest rate, loan terms and conditions is why you should consider investing with Mini Deposit Home Loans.

Other Benefits Include:

• You Don’t Risk the Family Home: Unlike the family pledge or parental guarantee home loan offered by a traditional bank, the MINI D Loan does not put at risk the family home and it is not limited to just the bank of mum and dad helping out. The MINI D Loan option opens the opportunity for extended family  or anyone looking to be part of a Borrower’s new home ownership dream.
• The Ability to Choose: As a Lender you have the choice of deciding who benefits from a Mini D Loan and can feel comfortable and reassured knowing a well-documented legal loan is in place to cover any future family circumstances. 
• A Diversified Investment Opportunity: As a Lender you can choose to invest across multiple loans to balance your personal financial time frames, risk appetite and cashflow requirements.
• Flexible Investment Options: With a MINI D Loan you choose, your investment amount, loan terms, interest rate required, preferred repayment methods of Principle and Interest, Interest Only or Capitalised Interest, and any other specific loan terms and conditions you require.
• Loan Management: The highly qualified team at Mini Deposit Home Loans will be responsible for the administration of all your loan documentation and management from start to finish. There is 100% transparency in our loan management processes, and as a Lender you will have online access to monitor your lending portfolio anytime.
• No Fees: As a Lender with Mini Deposit Home Loans there are no additional fees, and Lenders simply receive the agreed repayments in full each month.
• Missed or Late Payments: As a Lender with Mini Deposit Home Loans you can be confident you will receive your monthly interest as agreed, and you are covered by our Mini D Guarantee pledge.

Individuals, companies, and trusts (including SMSF trusts) can lend with Mini Deposit Home Loans. We also permit the registration of joint accounts.

To lend as an individual or as part of a joint account with Mini D Loans in Australia you must have an Australian bank account and be at least 18 years of age. We will also need to be able to confirm your identity. After your Lenders registration you will receive an email requesting you to upload your identification through our secure online platform. 

All Lenders are responsible for paying any relevant taxes on any interest earned through Mini Deposit Home Loans.

Mini Deposit Home Loans is not a bank or financial institution. We are different in a few distinct ways.

Mini Deposit Home Loans and Mini D Loans are the trading names of our own finance company Mini D Credit Pty Ltd ACN 649 002 157.

Mini D Credit Pty Ltd holds an Australian Credit Licence (ACL) 531559 that can provide loans both directly in its own name and also as a finance intermediary (Finance Broker) to offer clients various types of loans through our lending panel of over 50 different banks and lenders across Australia.

Mini D Credit Pty Ltd is not authorised under the Banking Act and is not supervised by the Australian Prudential Regulation Authority. Nor is Mini D Credit Pty Ltd or its subsidiary business entities covered by the depositor protection provisions in section 13A of the Banking Act. However, any funds we hold on your behalf pending our future funding obligations will be held within a reputable Australian authorised deposit-taking institution that is covered by the Australian Government Financial Claims Scheme.

Our number one objective is to ensure that all individual Lenders receive the principal and interest due to them on an regular basis.

In the event of a missed repayment by a Borrower, the MINI D Guarantee (MDG) will be called upon to repay the interest component of any outstanding loan whilst the management team coordinates the recovery process and collection with both our internal and external loan collection agencies.

Whilst we believe the MDG provides meaningful protection for investors, it is important to remember it is not an insurance product. Any capital invested has the same risk as it usually would with any other alternative investment option.

For more information please refer to the MDG FAQ.

The MINI D Guarantee (MDG) was established to reassure our lending investors that our number one focus and objective is to ensure that they receive their monthly interest repayments as agreed.

We understand that many of our Lenders are investing for a better financial return than what they would usually obtain from a traditional bank term deposit or other investment. This is why we have established the MDG.

What does the MINI D Guarantee cover?

Our number one objective is to ensure that all individual Lenders receive the principal and interest due to them on an regular basis.

In the event of a missed repayment by a Borrower, the MDG will be called upon to repay the interest component of any outstanding loan whilst the management team coordinates the recovery process and collection with both our internal and external loan collection agencies.

Whilst we believe the MDG provides meaningful protection for investors, it is important to remember it is not an insurance product. Any capital invested has the same risk as it usually would with any other alternative investment option.

How is the MINI D Guarantee funded?

The money allocated to the MDG fund comes from a percentage of the overall working capital of our business and fees paid by the Borrowers.

When a Borrower has a loan approved, they may be required to pay a monthly risk fee. This amount is calculated by several factors, such as their credit rating from independent credit reference agencies and the overall strength of the home loan application.

Why offer the MINI D Guarantee when most other investment opportunities do not?

The management team of Mini Deposit Home Loans understand that there is always a risk in lending money and that a Borrower may miss a payment or even default on a loan. We are however very confident that our strict assessment systems and Borrower criteria will minimise the risk and help to put our lending investor’s mind at ease.

To demonstrate that we strongly value our lending investors, whilst we have confidence in our Borrower/s selection process, we have also established the MDG fund to be called upon if required.

To date we are very proud to announce there has been no claim against our MINI D Guarantee.

Mini D Loans – Risks Management?

As with any finance related product the major risk is defaults by the Borrower.

We are very confident that the Mini D target market default rate will be very minimal (if any) given our strict credit assessment and loan product policies.

Our credit policy and assessment process are built around the old time tested and well proven
5 C’s of Credit:- Character, Capacity, Capital, Collateral and Conditions.

Character – refers to the Borrower’s credit history and financial responsibility profile. As part of processing any loan we have access to credit reports, bank statements, income verification, asset and liability position, rental history etc and believe we can verify the Borrower’s character very well. As a double check however, and because the Borrower’s primary loan is through a traditional lender all loan assessment information is doubled checked and confirmed by an independent third party.

Capacity – refers to the Borrower’s ability to repay the loan. Given our target market, the majority of Borrowers have a university degree or similar educational qualification, and enjoy high disposable income, very strong employment prospects and usually employed with a government fortnightly paycheck.

Capital – refers to the equity or deposit the Borrower is contributing. This is Mini D Loans greatest marketing strengths because it addresses the major roadblock to home ownership. Although the Borrower has limited equity or deposit on paper, they are very strong in the other 5 C’s. Their equity will build up over time given the Mini D Loan product is designed to assist for the purchase of an appreciating property asset rather than the traditional personal loans which are predominantly utilised for leisure or depreciating assets.

Collateral – refers to security that is being offered. Mini D will as part of the loan process and were suitable will hold either a registered or registerable mortgage supported with a caveat or GSA. However again given the nature of the Mini D Loan we effectively hold a personal guarantee by the Borrower’s and given the Borrowers above character, capacity, and job status, we anticipate defaults to be minimal if any and can be actively managed out with refinancing or loan restructuring.

Conditions – refers to what loan terms and conditions should be applied to a loan given the overall risk profile of the Borrowers and the economic financial conditions at the time of application. How long have they been employed, is their employment stable, is their industry considered sustainable, what is the loan purpose etc.
With all the above considered in context with the Borrower’s financial information supplied we can assess the overall credit risk profile of the Borrower and tailor a Mini D Loan with the appropriate interest rate, loan terms, pre settlement and post settlement conditions as required. 

In addition to the above, we also have a unique Borrower early warning system built into our loan management. As finance brokers of the primary loan, were notified via backchannel messaging should any of our loans written have any loan discrepancies, late repayments, or loan discharge requests etc.

It would come as no surprise to anyone that from a industry statistical perspective the 2 highest personal loan defaults are:

1. Males in their early 20’s, non- homeowners who obtain personal loans for cars, boats, and motor bikes.
2. People who obtain personal loans for funding weddings and holidays.

Mini D Loans do neither of the above or indeed any of the other high risk personal loans. 

The Mini D Loan is a uniquely targeted personal loan product unlike any traditional personal loan in the consumer market today. Mini D Loans will only be utilised to assist new home buyers as follows:

1. A direct top up loan for a client’s deposit.
2. A consolidation loan of other debts to improve clients home loan serviceability.
3. A combination of both 1 & 2

Lenders Insurance was established by the Australian Government in 1965 to provide Lenders Mortgage Insurance as a way to help more Australians purchase their own home with a smaller deposit.

More commonly known as Lenders Mortgage Insurance (LMI), is also referred to as: low equity premium; equalisation fee; reduced equity fee; and, low deposit risk fee.

If the Borrower does not have at least 20% deposit plus purchase costs the bank or lending institution requires the Borrower to purchase LMI.

LMI adds no value to the Borrowers except for the fact that it allows them to finance the purchase of a property without providing more than a 20% deposit plus purchase costs.

The mortgage insurance policy protects the bank as the client, with the insurance company only protecting the bank in the event that the now insured secured property sells under the outstanding loan balance.

If the mortgage insurance company is required to pay out a claim to the bank, then the mortgage insurance company can sue the original Borrower for any compensation claim amount plus costs.

Mortgage insurance is an expensive single use policy not transferable between lending institutions and not able to be negotiated or cancelled by the Borrower. If the loan is paid out most of the premium is not refundable to the Borrower.

In addition, the insurance premium is usually capitalised into the overall loan the Borrower must repay and as such the Borrower must pay interest on the premium for the term of the loan which can be up to 30 years.

The concept of parents lending money to their children to help with property purchase is as old as time itself. However it has always had limitations and poses risks for the parents.

Downside for the Family Pledge / Parental Guarantee

• Parents have traditionally gifted monies to their child which can leave parents and the extended family exposed from an estate planning and wealth protection point of view. The other option requires the parents to offer additional security which is effectively allowing the banks to have cross collateralisation over the family home which creates potential risk.
• Life events do happen and situations where children run into financial difficulty with events such as: employment uncertainty; changes in matrimonial status; and/or, health related issue etcetera may occur.
• In the age of many blended families there are sometimes limitations on the ability of parents to secure property which is often owned jointly with a non-parent spouse and this can cause stress between family members.
• Parents sometimes have the belief or attitude that what they do for one child they should do for other siblings which is difficult if there is only one property for the additional security under the family pledge or parental guarantee situation.
• In addition, a family pledge and/or parental guarantee is also somewhat discriminating because it is based on the financial success of the parents and does not allow if the parents have in their own life been subject to events such as health problems, financial difficulties or relationship breakdowns.

Benefits of the MINI D Loan option!

• The MINI D Loan allows investors to provide financial assistance with limited risk.
• The process is well documented and can secure monies advanced by any Lender. A well document loan is essential in amicably resolving family disputes or estate management if they arise.
• Due to the structure of the MINI D Loan the Lenders have the ability to request an interest rate that cannot only assist the Borrower with a lower interest rate whilst also replace or improve the income the Lender would have otherwise enjoyed from term deposits or other alternate investments.
• In addition, subject to the Lenders financial structure and suitable financial advice, there may be tax advantages available for the Lender.

The overall process is quite simple,

Step 1: The potential investor completes the online Lenders registration form.

Step 2: Within 24 hours you will receive a phone call from one of our team for a quick 5 minute chat to fully understand your specific investment requirements and how we can assist.

Step 3: Following our phone call and in line with Australian law you will receive an email with a request to upload through our secure online platform your Lender supporting documentation such as identity verification and confirmation of investment funds.

In addition you will be asked to complete a short investment loan profile detailing your loan investment requirements with regards to: the criteria of the Borrower; your investment amount; loan terms; interest rate required; preferred repayment methods of principle and interest, interest only or capitalised interest; and, any other specific loan terms and conditions you require.

Step 4: After we have confirmed all of your details, and based on your specific investment requirements, we will match your lending criteria to a selection of Mini D Loan Borrowers for your review and consideration.

Step 5: Upon acceptance of an investment opportunity our team will coordinate all of the legal paperwork. You will be asked to deposit your investment into our nominated solicitors trust account pending the completion of the Borrower’s loan agreement paperwork and the settlement of all loans.

Step 6: Following settlement you can sit back and relax knowing your investment is now working for you to enjoy the regular monthly income stream from your fixed income investment.

The Lenders interest rate return is determined by you the Lender when you complete the Lenders expression of interest to invest your money.

The interest rate to the Borrowers is set by Mini D Credit Pty Ltd after considering the Borrowers risk profile and credit rating. The Borrower will then be offered a loan on certain terms and conditions such as interest rate, loan term and repayment type.

The Borrowers then have the opportunity to accept or reject one or more of the various loan offers. 

Mini Deposit Home Loans currently only offers fixed rate loans.

This means that you will enjoy a monthly fixed interest amount credited to your account for the term of the loan. 

The investment terms are entirely at your discretion. When you complete your Lenders expression of interest, you detail your investment criteria and this will be matched with a suitable Borrower. 

Mini D Loan assesses Borrowers creditworthiness using best practice credit assessment techniques. Only Borrowers who meet Mini D Loan stringent requirements are listed and made available to Lender investors.

Currently the minimum investment is $100,000.

There is no maximum investment.

As part of Mini Deposit Home Loan risk management strategy, we encourage investment fractionalisation. Instead of investing in one loan where your investment exposure is at risk to one individual Borrower, our fractionalization method allows you to invest as little as $5000 across numerous Borrowers loans, thus reducing the risk of loss in the event of a Borrower default.

For example, you may choose to invest $50,000 by lending $5000 per Borrower across various postcodes and types of property like townhouses and standalone homes.

This gives you the ability to diversify both your risk and your loan portfolio across different locations, interest rates and loan terms.

When investing money, you should consider a diversified investment structure strategy.

There are mainly 5 different asset classes used when investing money: cash in bank; fixed interest income; property; shares; and, alternative investments.

Lending money with Mini Deposit Home Loans provides a fixed interest income.

We predominantly assist Borrowers to raise sufficient funds (Gap Finance) for a deposit for their new home.

We currently offer both secured and unsecured loan options to both Borrowers and Lenders. This is subject to the requirements of the first mortgagee.

The management of Mini Deposit Home Loans manage risk through numerous strategies.

As is common with most investments there are risks in relation to lending money to Borrowers. We mitigate any unexpected losses in the following ways:

1. By applying well-tested credit policies and following a robust credit assessment process. We believe that the best way to minimise any unexpected loss to investors is to implement and maintain the highest standards when assessing loan applications. We have only experienced credit professionals reviewing each loan application and applying the latest technologies to track and monitor the performance of approved loans.
2. We have experienced consumer credit collection specialist to manage any Borrowers who are late in making repayments.
3. As part of our lending processes all Lenders funds are held in our solicitor’s trust account pending settlement.
4. All Borrower repayments paid during the month are held in our secure account pending clearance, and then disbursed to our Lenders on or before the 7^th of each month.
5. Additional risk management include strategies of investment Fractionalisation and Diversification as detailed in the ‘ Lenders FAQ’.

The Borrowers are individuals or couples seeking to raise funds towards their deposit to purchase a new home.  They must have a good credit history and satisfy our strict credit assessment policy and servicing criteria. In addition, the Borrowers have also been approved for a primary loan from a traditional mortgage lender. 

Mini Deposit Home Loans was established to assist home buyers in the financing of their new home. Some of the Borrowers personal details may be made available to the Lender, however this will only be provided with the Borrowers consent. This process of sharing information is by invitation only and runs over a secure URL internet link.

As part of the loan approval documentation all Borrowers must agree to a direct debit arrangement from their bank account that their primary income source is paid into.

Lenders investment returns will be paid into your nominated bank account by direct credit on or before the 7^th of each month subject to funds clearing.

If a Borrower repays their loan early you will be notified as soon as possible. At this time the Lender may choose to reinvest either all or part of your investment with MINI D Loans.

We expect that all loans are repaid by the Borrower as per the original terms and conditions of their respective loans. In the event the Borrower applies to extend or rollover the MINI D Loan past their initial loan term all Lenders will have the opportunity to extend the loan term if they agree.

As an investor you have a responsibility to declare your earnings as taxable income. At the end of each financial year we will provide you with a statement of the interest you have earned to assist you to complete your tax return.

If the Lender wishes to reinvest either principle and/or interest into another loan opportunity, please contact us to discuss options at: support@minideposit.com.au or by calling on 1300 64 64 33.

Yes, when you complete the Lenders expression of interest there is an option to for you to choose either Interest Only, Principle and Interest or to Capitalise your Interest.

The simplest way to create an income stream is to choose to accept interest only repayments and utilise the monthly interest payments as an additional income stream the same way as monthly income from other investments options.

The Lender will be contacted immediately once we have been notified that the Borrower intends to repay the balance of the loan, or 30 days prior to the final payment of the loan term. The Lender can then decide to either reinvest into another MINI D Loan or withdraw all or part of their funds.

As a Lender with MINI D Loans you are lending funds towards a specific property. Therefore all investment funds are held in our solicitors trust account pending settlement. This may be for a period up to 30 days subject to the settlement time-frame.

As part of the Lenders expression of interest to invest with MINI D Loans you can personally outline your required investment amounts, terms and conditions and interest rate. We will do our best to match your required investment criteria and in the event that an alternative investment offer is available we will contact you to discuss. The Lender will obviously have the final decision on all investment terms.

Borrowers loans range between $20,000 and $100,000. Our average borrowers loan size is around $60,000 made up from one or more Lenders.

The loan terms are determined by the Lender and range between 1 and 5 years.

Unfortunately no, the money held in the solicitors trust account does not earn interest. For this reason you will only be asked to deposit funds approximately one week prior to the settlement of the loan.

The MINI D Loans are not a liquid investment and should be considered by the Lender as fixed term investment.

Should you wish to divest your investment prior to the end of the fixed term please contact our office to discuss your situation.

Loans are repaid via direct debit, with the dates of payments defined according to your MINI D Loan agreement.

After a Lender has submitted their expression of interest to lend money they can withdraw or amend their offer under a 3 day cooling off period prior to Borrowers acceptance .

Once the Lenders loan offer has been accepted by a Borrower and the investment funds deposited into our solicitors trust account, pending settlement, the Lender is not able to amend or withdraw their offer to the Borrower.