Boost your home deposit savings with an investment that generates an income

Buying your first home, or helping your kids buy theirs is an exciting and life-changing journey and, although it’s not fun, saving for a deposit is an important step towards becoming a home owner.

There are many ways to save for a home that don’t require major changes to your lifestyle and one particular method is leveraging an investment vehicle to get the money you’ve already saved working harder for you. However first, you need to set your savings target!

Your savings target for your deposit should be the difference between the mortgage amount you can afford and the amount you wish to spend on your home. If you’re having trouble working out an affordable mortgage, the Australian Securities and Investments Commission (ASIC) have a great calculator on their MoneySmart website.

With this figure in mind, there are a number of investments that deliver an income that may accelerate your savings potential. According to ASIC, investing your savings into a managed fund may be appropriate if you are planning to buy your new home in a few years’ time due to their suitability toward longer investment terms.

An alternative to a managed fund, could be an unlisted Mortgage Trust investment, such as the Trilogy Monthly Income Trust by Trilogy Funds. A Mortgage Trust is an investment that is operated by a responsible entity and the money that is invested within the Trust is lent out as mortgage loans to borrowers undertaking property development, construction, or land subdivision projects. The interest received by the responsible entity on the loans is then used to pay you a yield which is commonly referred to as a ‘Distribution’. The yield on distributions changes from fund to fund.

The Trilogy Monthly Income Trust by Trilogy Funds is a pooled mortgage investment with underlying investments consisting of cash products, such as cash deposits or term deposits and, loans secured by registered first mortgages. Utilising lending criteria, Trilogy Funds will determine which loans are suitable for investing. A policy for loan diversification is used to ensure risks are not concentrated with one particular borrower or group of borrowers, in one particular geographic area or one type of property.

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To find out more about Trilogy Funds’ investment offerings speak to Walter Raspopin. Call 0427 355 909 or email

IMPORTANT INFORMATION: This article is issued by Trilogy Funds Management Limited (AFSL 261425) and provides general information only. It does not provide financial product advice nor is it an offer of securities. If you require personal advice on the suitability or other aspect of this investment, consult a licensed adviser, who will conduct an analysis based on your circumstances. Past performance is not a reliable indicator of future performance. Applications can only be made on the Application Form accompanying the Product Disclosure Statement (PDS) dated 17 October 2016 available from Trilogy Funds. Investments in the Trilogy Monthly Income Trust are not bank deposits and are not government guaranteed. The PDS should be read in full, particularly the risk section, prior to lodging any application. Investments involve risk which can lead to loss of part or all capital.