Blog

We’re back with another ASCF investor’s update, analysing all the key economic and investment trends from the past month, from the Federal Budget, to RBA prospects, to the property market and beyond.

You can catch up with past investor’s updates on the ASCF Blog. If you would like to receive these updates monthly via email, you can sign up to receive an Investor Pack here.

Trading Update

As forecasted in our previous newsletter, the RBA again increased the official cash rate by 25 basis points to 4.35% at their meeting earlier this month. 

Inflation & Employment Markets

Notably, the CPI rose by 4.2% in the 12 months to April 2026, which was less than expected, down from 4.6% in the 12 months to March. In seasonally adjusted terms, this represents a 0.1% monthly decline, with transport (-2.7% MoM) being the primary contributor, driven by the government’s reduction of the fuel excise. 

The trimmed mean rose to 3.4% in the 12 months to April, up from 3.3% in the 12 months to March, while unemployment climbed to 4.5% in seasonally adjusted terms in April, up from 4.3% in March. This marks the highest seasonally adjusted unemployment rate in Australia since November 2021. 

Future Prospects

The RBA will next meet on June 16th, with the Big Four banks all forecasting a hold, though they remain divided in their long-term outlooks. 

Initially, NAB adopted the most hawkish stance, forecasting another rate rise in June. However, after April’s unemployment data came in higher than expected, they have revised this forecast, and now expect the RBA to hold in June before raising rates again in August, as they believe “there is now less urgency for the RBA Board to lean more firmly against inflation risks.”

Westpac also expects the Board to hold in June, but maintains a delayed tightening bias. After initially predicting rate rises in May, June, and August, they now expect the Board will hold in June, followed by two further rises in August and September, reflecting “the RBA’s appetite to continue the current pace of tightening in the current uncertainty.” 

On the other hand, ANZ and CommBank have adopted a neutral bias, with both expecting the Board to hold in June and into the foreseeable future. CommBank specifically forecasts the RBA will “be on hold for the remainder of 2026”, given “the Board now has space to monitor the economic impact of the conflict in the Middle East.”

Our internal view is that the RBA is now firmly on hold, with inflation likely to moderate further as a consequence of both reduced consumer spending and business investment due to uncertainty created by the ongoing tensions in the Middle East and the recent budget announcements. 

Investor Rates

In light of the recent RBA rate increases, we are pleased to advise that, from June 1st 2026, we will be increasing our targeted distribution rates across select terms in our ASCF High Yield, Select Income, and Premium Capital Funds. The ASCF Private Fund targeted distribution rates will remain unchanged.

Please find our new targeted distribution rates below, which will take effect from June 1st:

Sources: Australian Fund Monitors, Bloomberg, Investing.com 
Note 1: Premium Capital Fund began in February of 2020
Note 2: Past performance is not indicative of future performance.

To learn more, see our Investor FAQs.

Lending Activity Update

In April, inquiry levels were encouraging with $32,257,996.80 in loans settled.

The unit price across all three of our retail funds remains at $1.00 per unit.

All monthly distributions have been paid in full for April.

To learn more, see our Borrower FAQs or see our Loan Summary as at 30th April 2026.

ASCF Review of the Federal Budget

The 2026/27 Federal Budget has delivered one of the most significant changes to Australian property investment policy in decades, with major reforms proposed to negative gearing and capital gains tax concessions. For many investors, this may significantly change the risk versus reward equation of owning residential investment property.

Under the proposed changes, negative gearing on established residential properties purchased after budget night would effectively be removed from July 2027, while the long-standing 50% capital gains tax discount would move to a more limited, inflation-indexed system. Existing investments would be grandfathered; however, future investors may face a very different landscape.

For investors, these changes may strengthen the appeal of Australian pooled mortgage funds. Unlike traditional property investment, pooled mortgage funds are not reliant on speculative capital growth or tax concessions to generate returns. Instead, returns are primarily driven by interest income earned from loans secured against Australian real estate assets. This creates a different investment proposition—one focused on diversification and risk management rather than relying on rising property prices.

Historically, many residential property investors accepted low rental yields and negative cash flow because tax benefits and future capital gains helped justify the strategy. With those concessions now being reduced, investors may increasingly question whether committing large amounts of capital to a single residential property remains as attractive as it once was. A pooled mortgage fund can offer several advantages in this environment, including:

Focus on Targeted Income Distributions

Mortgage funds generally aim to provide targeted distributions generated from mortgage interest payments. In today’s higher interest rate environment, this can provide an investment alternative without many of the ongoing costs associated with direct property ownership, such as maintenance, insurance, rates, vacancies, and property management expenses.

Diversification Across Multiple Loans

Rather than relying on the performance of a single property, investors gain exposure to a diversified portfolio of secured loans, which can help reduce concentration risk.

No Tenant or Property Management Issues

Pooled mortgage fund investors are not responsible for the day-to-day administration, repairs, vacancies, and rising holding costs commonly associated with direct property ownership.

Reduced Dependence on Capital Growth

Traditional property investment in Australia has often relied heavily on long-term house price growth. If these reforms reduce future property price growth, returns may potentially become more income-dependent than growth-driven. Mortgage funds, by comparison, are structured as primarily income-focused investments.

Improved Accessibility 

Investment properties often require large deposits, stamp duty, and significant leverage. Pooled mortgage funds can offer lower entry points and defined investment terms compared to the multi-year commitment often required for direct property.

Benefiting From Higher Interest Rates

Higher interest rates have increased borrowing costs for property investors, placing pressure on negatively geared strategies. However, those same higher rates can support targeted income returns within mortgage funds, particularly where lending remains conservatively structured and secured by Australian real estate.

The combination of reduced tax incentives, slower projected property price growth, and elevated holding costs may represent a turning point for traditional residential property investment in Australia. While direct property ownership will likely remain part of many investment portfolios, pooled mortgage funds are emerging as a consideration for investors seeking an option backed by Australian real estate security.

Want to learn more? Contact us to explore your investment options.

Important information: Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

An Interesting Transaction

Problem:

In December 2025, a broker introduced ASCF to a couple who were renovating a residential investment property in Malvern, Victoria. The customers required additional funds to complete a $250,000 renovation to the property. However, they were unable to raise the necessary funds through their 1^st mortgage lender to enable the renovations to be completed so as to maximise the sale value of the property. 

Solution:

ASCF commissioned one of our panel valuers to complete an “as is” valuation on the security property, which allowed us to offer a 6-month, 2nd mortgage loan of $282,000 at 14.95% p.a. with the sale of the property as the exit to repay the loan. The overall LVR was 55.59%. 

This enabled the customers to complete the renovation, and list the property for sale, with a contract secured in March 2026. Our loan was repaid in full the following month (April), and interest was only charged for the period the funds were drawn. 

The ASCF Advantage:

ASCF understands that customers require flexibility. As such, we can structure our loans to ensure borrowers can achieve their financial goals in circumstances where traditional lenders may not be able to assist. 

Property Update

Source: Cotality HVI, 01 May 2026

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We’re back with another investor’s update for March 2026, analysing all the key economic and investment trends from the past month.

You can catch up with past investor’s updates on the ASCF Blog. If you would like to receive these updates monthly via email, you can sign up to receive an Investor Pack here.

Trading Update

As forecasted in our last update, the RBA again increased the official cash rate by 25 basis points in March, bringing the cash rate to 4.1%. Unlike February’s unanimous decision, the board’s March decision passed with a 5-4 majority, marking the narrowest margin since the RBA started publishing unattributed votes in July 2025.

With events in the Middle East continuing to add volatility to the situation, all eyes now turn to the ABS Q1 CPI data release next Wednesday. This will be crucial ahead of the RBA’s next meeting on the 4th of May, a week before the Federal Budget release on the 12th of May, with experts divided in their forecasts. 

Future Prospects

Currently, market consensus among the Big Four banks forecasts a further 0.25% rate rise in May. However, the tone of these forecasts differs, with CommBank noting that the decision is “a line ball” and NAB stating “there is considerable uncertainty around any point forecast at this time.”

In contrast, Westpac has adopted the most hawkish stance, predicting three further 0.25% rises in May, June, and August, bringing their expected peak cash rate to 4.85%. If this comes to fruition, it would mark the highest cash rate since November 2008. Westpac’s prediction is underpinned by “the surprisingly rapid pass‑through of higher fuel and other oil‑derived product prices into other prices in Australia.” 

Property & Employment Markets

The Australian property market continued to be notably ‘two-speed’ in March. Values in Melbourne and Sydney decreased slightly for the second straight month, whereas Perth posted a third consecutive monthly gain of greater than 2%, with Brisbane, Adelaide, and Darwin also posting monthly gains of greater than 1%. 

There are also some early indicators of an ease in purchasing demand, with Cotality’s estimated quarterly home sales down 5.6% on the five-year average in February.

Additionally, unemployment increased by 0.2% in seasonally adjusted terms, rising from 4.1% in January to 4.3%. The CPI also rose by 0.2% month-on-month in seasonally adjusted terms in February, with housing (+0.7% seasonally adjusted) being the largest contributor, and the trimmed mean remaining at 3.3%. 

How ASCF Helps

Despite shifting RBA forecasts and geopolitical volatility, ASCF’s funds provide an appealing alternative to fluctuating variable-rate assets. Our ASCF High Yield Fund offers a targeted distribution rate of 7.50% per annum for a 12-month fixed term, with interest paid monthly. 

Sources: Australian Fund Monitors, Bloomberg, Investing.com 
Note 1: Premium Capital Fund began in February of 2020
Note 2: Past performance is not indicative of future performance.

To learn more, see our Investor FAQs.

Lending Activity Update

In March, inquiry levels were robust with $19,572,468.74 in loans settled.

The unit price across all three of our retail funds remains at $1.00 per unit.

All monthly distributions have been paid in full for March.

To learn more, see our Borrower FAQs or see our Loan Summary as at 31st March 2026.

Why Invest With ASCF?

A Beginner’s Guide to Pooled Mortgage Funds

A Beginner’s Guide to Pooled Mortgage Funds

For many investors, striking the right balance can be challenging, particularly in a world of uncertain global conditions. Considering this, one Australian-based investment option that has been steadily gaining attention are pooled mortgage funds. But what exactly are they, and how do you get started? Let’s break it down.

What Is a Pooled Mortgage Fund?

A pooled mortgage fund is an investment where your money is combined with other investors’ funds and used to provide loans, which are typically short-term and secured by real estate.

Unlike direct mortgage syndicates, where you fund a single loan, a pooled fund spreads your investment across a diversified portfolio of multiple loans. This diversification helps reduce risk while aiming to generate returns from the interest paid by borrowers.

How Do They Work?

1. Investors contribute funds to a managed pool for a set term.
2. The fund manager lends this money to borrowers, subject to strict criteria regarding property value, asset type, and the loan purpose.
3. Borrowers pay any initial establishment costs and interest on their loans.
4. The fund distributes this income to investors—usually monthly.

The short-term nature of the loans and the underlying property security are key structural features of a pooled mortgage fund.

Why Investors Are Considering Mortgage Funds

There are a few reasons these funds are becoming more popular:

Asset-Backed Security

Loans are typically secured against residential property with conservative LVRs to provide a protective equity buffer for investors.

Diversification

Investments are spread across multiple loans, reducing exposure to any single borrower or property security.

Lower Volatility

The underlying Australian residential real estate market has historically shown lower volatility due to demand and supply constraints.

What to Look for in a Fund

If you’re considering investing, some key factors to assess include:

• Loan-to-Value Ratios (LVRs) – Lower LVRs generally mean more conservative lending.
• Diversification – How many loans and borrowers are in the fund?
• Management Experience – The expertise of the team managing the fund is critical.
• Transparency and Reporting – How often does the fund provide updates on portfolio performance, and are the audited financial statements easily accessible?

Final Thoughts

If you’re considering investing in a pooled mortgage fund, get a copy of our PDS and read through it, highlight any areas that require further explanation, and speak to an investment manager, as they are there to give you clear answers to your questions.

Want to learn more? Contact us to explore your investment options.

Important information: Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

An Interesting Transaction

Problem:

A broker reached out to us last October with two clients seeking to downsize from their family home into a more manageable property for their retiree lifestyle. The borrowers, who were on a fixed retiree income, couldn’t find a major lender to assist them in bridging the gap due to their lack of serviceability for the peak debt during the bridging period.

As such, the clients were faced with the dilemma of either putting a contract down on the property they wanted to buy and hoping their current property sold within 60 days or finding temporary accommodation during the interim and moving all their belongings twice.

Solution:

By using a common-sense approach, ASCF assessed that the sale proceeds provided a definitive exit strategy. Accordingly, with expert insight from registered local agents and comparable sales across the area, the combined LVR was assessed at 47.65% across both securities. ASCF provided a $1.62 million loan at 9.75% p.a. over a 4-month term.

Ultimately, interest was capitalised into the loan facility, eliminating the need for ongoing cash-flow payments during the term and allowing the borrowers to focus on moving into their dream home without the urgency of forcing a sub-optimal sale.

What ASCF Does Differently:

The ‘bullet’ repayment strategy is the backbone of ASCF’s lending product suite, helping real-world borrowers in a finance industry often restricted by rigid amortisation schedules.Where traditional lenders come up short, ASCF makes a difference.

For more details about this transaction, see our Loan Summary.

Property Update

Source: Cotality HVI, 02 April 2026

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We’re back with another investor’s update covering February 2026, examining all the major economic and investment trends from the past month.

You can catch up with past investor’s updates on the ASCF Blog. If you would like to receive these updates monthly via email, you can sign up to receive an Investor Pack here.

Trading Update

Following last month’s decision to increase the official cash rate to 3.85%, RBA chief Michele Bullock has not ruled out further rises, noting that the board’s monetary policy meeting this week “will be a live meeting.”

Specifically, Bullock cautioned that although goods inflation has moderated, domestic capacity pressures mean services inflation remains high, with recent geopolitical tensions in the Middle East adding significant uncertainty to the situation, particularly regarding energy and oil prices. 

Future Prospects

Accordingly, while the Big Four initially predicted a pause in March followed by a hike in May, they have now revised that forecast to predict another 0.25% rate rise at tomorrow’s board meeting after RBA deputy governor Andrew Hauser warned that inflation “is higher than the projection we published in February.” 

As such, the Big Four are now forecasting rises in both March and May, bringing the peak rate to 4.35%. ANZ specifically blames the ongoing conflict in the Middle East, noting “the clearest and most immediate impact of the Middle East conflict on Australia is higher inflation“, while Westpac explains that the RBA “has not changed its pessimistic view of growth in supply capacity following the national accounts.” 

These predictions are underpinned by the release of January’s CPI data, which remained at 3.8% in the 12 months to January 2026, with the trimmed mean coming in at 3.4%. In January, the CPI rose by 0.5% in seasonally adjusted terms, with housing (+6.8%) being the largest contributor. 

Property Market

As a result, the Australian property market continues to be distinctly ‘two-speed’. In February, the midsized capitals again posted significant gains, whereas values in Sydney and Melbourne stagnated. 

Perth experienced a second straight monthly rise of greater than 2%, while Brisbane (+1.6%), Adelaide (+1.3%), and Hobart (+1.2%) also posted monthly gains of greater than 1%. Conversely, values in Melbourne and Sydney remained flat, posting slight rolling quarterly decreases of -0.4% and -0.1%, respectively. 

These figures are underpinned by a resilient labour market, with seasonally adjusted unemployment remaining at 4.1%, and the number of unemployed people falling to an eight-month low at 624,700. 

How ASCF Helps

While global geopolitical tensions and the prospect of further domestic rate rises have increased market uncertainty, ASCF’s funds continue to provide an appealing alternative to the fluctuations of variable-rate assets. Our ASCF High Yield Fund offers a competitive targeted distribution rate of 7.50% per annum for a 12-month fixed term, with interest paid monthly. 

Half-Yearly Financials Now Online

Our half-yearly audited financial statements for each of our retail funds, which cover the period ending December 31, 2025, are now available to view on our website or by clicking here. If you have any questions about these, please do not hesitate to contact our Investor Relations team at 1300 269 419.

Sources: Australian Fund Monitors, Bloomberg, Investing.com 
Note 1: Premium Capital Fund began in February of 2020
Note 2: Past performance is not indicative of future performance.

To learn more, see our Investor FAQs.

Lending Activity Update

In February, inquiry levels were healthy, with $18,351,346.10 in loans settled.

The unit price across all three of our retail funds remains at $1.00 per unit.

All monthly distributions have been paid in full for February.

To learn more, see our Borrower FAQs.

Why Invest With ASCF?

Global Uncertainty & The Appeal of Australian Pooled Mortgage Funds

Between the conflict in the Middle East, the ongoing war in Ukraine, shifting geopolitical alliances, and energy market disruptions, there is a growing sense of uncertainty and distrust in the global markets.
 
Given recent events, we have already had investors reaching out to enquire about our pooled funds, looking for investment opportunities with a stronger domestic focus.

The Resilience of Pooled Mortgage Funds

In uncertain times like these, pooled mortgage funds can be an excellent investment option, as, rather than being priced daily on global sentiment, they are backed by real Australian property assets and governed by tailored lending agreements. Accordingly, returns are generated from managed interest payments, not share price movements.

What’s more, each loan is secured by registered mortgages over predominantly residential property, and, typically, short-coded loans provide a more manageable level of risk.

Backed By Australian Property

ASCF’s pooled funds are backed by Australian property only, which—as we see in the market update section below—continues to be a resilient asset. Additionally, each loan is assessed on its individual merits. It’s not simply about asset value—loan purpose, borrower character, location, and exit strategy are all critical factors too. 

For many investors, property funds offer a more predictable return compared to the volatile global markets. This is especially true in Australia, given the demand on all levels of the property market, whether for residential or investment purposes. With the current lack of supply and a shortage of trades and materials, we expect these trends are likely to continue in the medium term. 

ASCF’s Track Record

In our current times, finding peace of mind with your investment choices can be challenging. However, at ASCF, we feel that our funds have shown stability to date, with over $312 million in funds under management and growing.

Want to learn more? Contact us to explore your investment options.

Important information: Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

You can learn more about Our Funds here.

An Interesting Transaction

Problem:

An AFG broker presented us with a bridging transaction, wherein the customer had already purchased a unit in Noosa, which they were downsizing to. However, the customer urgently required additional funds to assist with the sale of their home and provide living expenses pending its sale.

Solution:

ASCF offered a 1^st mortgage loan of $222,000 at 10.25% per annum over a six-month term against the newly purchased unit, which was unencumbered. Additionally, we also took a 2^nd mortgage over their home as collateral security, allowing ASCF to control the sale proceeds when the property eventually settled.

Given the very low LVR of 7.34%, we were able to accept a Cotality desktop valuation to meet our requirements. We also confirmed the value of the 1^st mortgage debt, given that the sale of the property is the exit strategy for our loan.

Ultimately, the loan was settled within 3 business days from the initial enquiry, pleasing both the customer and the broker.

What ASCF Does Differently:

ASCF remains one of the most responsive private lenders in the Australian market without compromising on credit quality, much to the delight of our customers and broker partners.

For more details about this transaction, see our Loan Summary.

Property Update

Source: Cotality HVI, 02 March 2026

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We’re kicking off the year in style with another monthly investor’s update, analysing the major trends from January 2026.

You can catch up with past investor’s updates on the ASCF Blog. If you would like to receive these updates monthly via email, you can sign up to receive an Investor Pack here.

Trading Update

Last week’s RBA meeting resulted in a notable recalibration of domestic monetary policy. After a period of easing throughout 2025, the RBA decisively shifted its policy stance and increased the official cash rate by 25 basis points to 3.85%. 

This increase marks the Board’s first tightening of policy since November 2023, as the RBA recalibrates to a higher-for-longer environment, noting that domestic capacity pressures are greater than previously assessed. This resulted in a revised forecast, with inflation now not expected to return to the 2.5% target midpoint until June 2028.

This move was precipitated by a resurgence in inflationary pressures over the second half of 2025, with the annual CPI for the December quarter rising to 3.8%, and the trimmed mean climbing to 3.3%. A key driver of this was the 21.5% annual increase in electricity prices, although headline figures were somewhat skewed by the unwinding of state-based energy subsidies, among other temporary factors. 

Future Prospects

So, what does this mean as we navigate 2026? 

Consensus among the Big Four diverges regarding the path ahead. NAB has adopted a hawkish stance, predicting another increase in May, whereas CBA, Westpac, and ANZ currently anticipate a period of stability. 

Property Market

Despite this return to a tightening bias, the Australian residential property market continues to show resilience. CoreLogic’s national Home Value Index rose by 0.8% in January, while national annual growth accelerated to 10.2% as of January 2026—more than double the 4.9% recorded across 2024.

Perth and Adelaide led the way with monthly gains of 1.9%, while Sydney and Melbourne rebounded after slight declines in December. 

Residential property prices continue to be underpinned by a shortage of new housing supply, rental price growth (+3.9%), and a robust labour market, with ABS data for December revealing the unemployment rate fell to 4.1% as the economy added 65,200 jobs. 

How ASCF Helps

As the RBA continues to navigate these complexities, ASCF’s targeted distribution rates provide an alternative to the volatility of variable-rate markets. Our ASCF High Yield Fund offers a competitive targeted distribution rate of 7.50% per annum for a 12-month fixed term, with interest paid monthly. 

We hope your year has gotten off to a fantastic start, and we look forward to staying in touch throughout 2026!

To learn more, see our Investor FAQs.

Lending Activity Update

In January, loan originations and inquiry levels were encouraging, with $4,699,952.83 in loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for January.

To learn more, see our Borrower FAQs.

Why Invest With ASCF?

Explained: Income and Return Potential in Pooled Mortgage Funds

Pooled mortgage funds provide investors with access to income generated from loans secured by property or vacant land.

How Do Pooled Mortgage Funds Work?

Rather than relying on market timing or capital growth of these assets, pooled mortgage funds generate returns primarily from mortgage interest payments, creating a more predictable income stream.

This is because each loan is secured against property assets, which can be assessed on their individual merits, whether that be the asset type, location, LVR, loan purpose, or the term required.

Accordingly, the risks can be managed within our parameters and tolerances. If a borrower defaults, the underlying property can be used to recover the funds, adding an important layer of protection.

Value Assessment 

Assessing the value of an asset is vital to this process. Whether we utilise our network or conduct a full qualified valuation, we can factor in any potential forecasted market drift. Then again, as most of our loans are short-term (less than 12 months), we have an advantage that normal long-term mortgage providers don’t have.

Diversification 

Another key strength of ASCF’s funds is diversification. Put simply, a single investment is spread across many loans, thereby reducing the potential impact of any one borrower experiencing difficulty, and helping to smooth overall returns and maintain a stable unit value.

With the volatility of the share market, pooled mortgage funds can offer a calmer, more predictable investment option to diversify into.

Pooled Mortgage Funds vs Property Investments 

For some, investing in property can offer good returns. However, it can also introduce a host of issues, such as bad tenants or difficult property managers.

At ASCF, we have served many investors who have chosen to go down the path of pooled mortgage funds after losing confidence in their property investment journey. Ultimately, for investors seeking lower volatility and a simpler alternative to owning an investment property, pooled mortgage funds can be a highly attractive income generation option.

Want to learn more? Contact us to explore your investment options.

Important information: Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

An Interesting Transaction

Problem:

A broker approached ASCF with a borrower who was at risk of losing his principal place of residence to their existing lender, a major bank.

The borrower had separated from his wife and lost his job within a short timeframe, resulting in the existing mortgage falling into arrears.

At the time of the application, the borrower had secured a new job with income that was more than sufficient to service the ASCF loan on a monthly basis and confirm his ability to refinance at the end of the 12-month term.

Solution:

ASCF approved and settled the loan in time to avoid the existing major bank taking enforcement action and selling the property as the mortgagee-in-possession.

Based on a full valuation from a panel valuer, the LVR on the security was 61.27%.

ASCF provided a total loan of $435,000 at a rate of 12.25% over a 12-month term.

Despite having a 12-month term, the broker was able to refinance the borrower to a long-term solution within just 7 months.

What ASCF Does Differently:

ASCF was able to assist a borrower where most other lenders could not. Despite the poor repayment history on his existing loan, ASCF was able to recognise that a one-off life event had caused the issue.

With a new job providing a strong income stream, the borrower ensured that they made repayments on time with ASCF each month, before successfully exiting the loan to a long-term solution.

Property Update

House prices bounced back in January after a slower December, rising by 0.8% nationally. After slight falls last month, values in Melbourne and Sydney rebounded, while Brisbane, Adelaide, Perth, and Darwin all saw increases of 1.2% or greater. 

More broadly, the national median dwelling value surged by 9.4% over 2025—almost double the 4.9% national rise seen in 2024. Regional markets outperformed capital cities with a 10.3% annual rise and 1% monthly rise, compared to 9.2% and 0.7% rises, respectively, for the capitals.

Across the capital cities, house values in the lower quartile increased by 1.3% in January, compared to a 0.3% rise in the upper quartile.

Source: Cotality HVI, 02 Feb 2026

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We’re back again with another monthly investor’s update, this time, wrapping up December 2025.

You can catch up with past investor’s updates on the ASCF Blog. If you would like to receive these updates monthly via email, you can sign up to receive an Investor Pack here.

Trading Update

As we move into 2026, the Australian economy shows a complex mix of resilience and pressure. 

The residential property market remains a primary driver of national wealth, with significant growth in cities like Brisbane, Adelaide, and Perth, fuelled by a chronic shortage of available stock and the lagged effects of earlier rate cuts, even as the broader market began to cool toward the December holidays. 

The narrative has shifted significantly from a few months ago. While many had hoped for a cycle of easing, the RBA has signalled that further rate cuts are unlikely in the short term. In fact, with inflation proving difficult to anchor, several major economists are now pricing in the possibility of a “fine-tuning” rate increase as early as February, depending on the next batch of data. However, this commentary has softened somewhat with the release of the CPI data for November, which showed that underlying inflation remains sticky at 3.2%.

What’s Next?

All eyes are now on the December 2025 quarterly CPI release, due at the end of January. Markets are bracing for potential volatility; if the quarterly print exceeds 0.8%, it may force the RBA’s hand toward a hike to ensure inflation returns to the target band by 2027. 

Despite the “higher for longer” interest rate outlook, we expect the property market to remain resilient. While higher borrowing costs will naturally act as a handbrake on affordability, the sheer lack of housing supply continues to provide a floor for prices. Government efforts to stoke demand via first-home buyer schemes are still clashing with the reality of slow construction timelines, high material costs, and a shortage of skilled labour. 

Consequently, our view is that while the rapid price surges of early 2025 may transition into a period of more moderate, stable growth, the fundamental “supply-demand” imbalance will prevent significant market correction in the year ahead. 

Finally, we hope you had a restful break, and we look forward to a healthy and prosperous 2026 ahead!

To learn more, see our Investor FAQs.

Lending Activity Update

In December, loan originations and inquiry levels were strong, with $19,150,449.14 in loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of December.

To learn more, see our Borrower FAQs.

Why Invest With ASCF?

How ASCF Assesses and Manages Loans: A Behind-the-Scenes Look

One of the questions investors often ask me is: how do we assess the loans we undertake? 

Usually, they are surprised at the lengths we go to in this assessment. However, this level of detail is essential, as we not only need to look after the security of the investment funds, but also stay compliant with a number of lending regulations.

At ASCF, capital preservation comes first. We assess every loan on its individual merits, using a structured, conservative approach designed to protect investor capital while generating reliable income.

It’s More Than Just Property Value

While the value of the underlying asset is important, it is only one part of the assessment equation. A strong valuation alone does not automatically make a loan suitable.

Rather, each loan must pass several layers of assessment.

Asset Type

The type of the asset is very important and has a direct bearing on the LVR. For instance, a residential property typically has a much higher chance of selling quickly than a commercial property. This is one of the factors we consider when determining the percentage of the asset we are prepared to loan against. 

A Sensible Loan Purpose

Additionally, we look closely at why the borrower is seeking funds.

The loan purpose needs to be logical, transparent, and commercially sound, as loans that demonstrate a clear and sensible use of funds are far more likely to perform as expected.

Assessing the Borrowers

What’s more, ASCF assesses the character and track record of the borrower by asking a range of questions to ensure they fully understand what they are undertaking. If necessary, we also consider whether they have previous experience to support their plans. A borrower’s willingness and capacity to honour their obligations is a key part of our decision-making process.

Location Matters

The location of the asset also has a bearing on whether we want the loan and to what LVR we are prepared to go. We need to factor in the potential time to sell the asset should the need arise. 

A Clear and Viable Exit Strategy

Every loan must have a realistic and achievable exit strategy (or strategies), which we also assess.

Common examples may include:

• Sale of the property.
• Refinancing through traditional lenders.
• Business cash flow. 

If the borrower intends to use a traditional lender as their exit strategy, we need to be sure they service with a mainstream lender. Accordingly, we will run serviceability tests, and if the exit strategy is a sale, we will ensure the loan term is sufficient to enter into a contract and settle within the timeframe. 

Ongoing Oversight

Once a loan is approved and funded, it doesn’t just disappear into the background.
We monitor their progress and keep a close eye on payments where required to maintain a gauge and to provide confidence that we are still on track.

Want to learn more? Contact us to explore your investment options.

Important information: Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

An Interesting Transaction

Problem

A Finsure broker presented a client to us who was seeking funding to complete the renovation of a residential investment property in Malvern, VIC, which was to be sold upon completion. The customers contributed $1 million of their own funds into the renovation, but ran out of money before it was complete. This left them in a tricky situation, as traditional lenders are not interested in funding incomplete construction transactions. 

Solution 

ASCF engaged one of our panel valuers in Melbourne to complete both an “as is” and “as if complete” valuation, which came in at $1,975,000 and $2,400,000 respectively. We were able to offer the customer a gross loan amount of $282,000 on a 2^nd mortgage over a 6-month term with retained interest for the term of the loan at an interest rate of 14.95% pa. The net proceeds of the loan were sufficient to meet the funding required to complete the renovation and prepare the property for sale. The LVR of 55.59% was based upon our valuer’s “as is” valuation amount. 

What ASCF Does Differently

With builders continuing to experience upward pressure on building costs and delays, we are seeing an increasing number of these incomplete construction scenarios. Where there is sufficient equity, we continue to help our customers complete their projects when the traditional lenders in the market will not.

Market Update

December saw the smallest national pricing gain in five months, rising by just 0.7%. Values in Melbourne and Sydney declining by 0.1% dragged this figure down. In contrast, Brisbane, Adelaide, Perth, and Darwin all saw increases of 1.6% or higher. 

More broadly, the Australian housing market finished 2025 strongly, with the national median dwelling value surging 8.6% over the year—the most since 2021. Regional markets outperformed capital cities with a 9.7% annual rise, compared to 8.2% for the capitals.

In 2026, while economic uncertainty and affordability may temper the pace of growth, a persistent shortage of new housing supply should act as a floor for property values, protecting against significant price drops.

Source: Cotality HVI, 1 Jan 2026

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