We have designed a simple insurance premium funding product to assist an owners corporation/strata corporation/body corporate/strata company or community association pay their annual insurance premium in times of financial hardship.
Easy monthly instalments
Pay for annual insurance in 12 monthly instalments* that suit your cashflow
Fixed interest rate
Know what your monthly repayments are over the course of the 12-month term*
Release cash flow
Free up your cash flow and reduce the burden on the administration fund tied up in insurance premiums
* Longer terms available on request.
How does it work?
- Lannock will provide funds to your owners corporation (OC) to enable payment of the strata insurance premium
- The OC will make 12 equal payments via direct debit commencing one month after the day that funds are provided (longer terms are available if required)
- The funding is for the amount of your annual strata insurance premium, there are no minimums or maximums
- Unlike standard forms of premium funding, Lannock will never cancel your insurance, even if you miss a payment
- We will not ask for personal financial information from owners.
- The loan is unsecured – there are no mortgages, charges, liens, caveats or guarantees
- There are no fees charged to the OC – no establishment or approval fees, no monthly fees
- There are no fees or penalties if you have a payment in arrears
- We do not make any payments or pay commission to 3rd parties such as your strata manager, broker or insurer
How do I access strata premium funding?
- Contact Lannock direct via strata@lannock.com.au or ask your strata manager to contact us.
You need to provide:
– Your name and contact details
– Your strata manager’s name and contact details
– A copy of the insurance tax invoice or renewal invitation
– A recent bank account statement of the OC - Lannock will send you a contract
The contract includes an undertaking that this funding will be ratified at the next general meeting. - Signed Loan Contract Returned
Depending on which state you’re in the OC or strata manager under OC delegation or approval of a general meeting may execute the contract documents. Return the contract to us at
strata@lannock.com.au. - Payment made
If the OC executed Loan Contract is received by the close of business on a Friday, funds will be available in the OC’s bank account the following Thursday to enable you to pay the strata insurer.
FAQs
What is the interest rate?
The Lannock comparative rate is 8.00%pa which is payable on the reducing balance of the funding amount. (Note: This is equivalent to a flat rate of interest at 4.39%, which is calculated on the total initial amount)
How is the interest rate calculated?
See the examples below for typical strata insurance premiums:
How are repayments made?
We will make a direct debit on the owners corporation’s bank account each month.
Can we extend the term?
The standard term is 12 months, but the OC can have up to 24 months if desired.
Does this loan comply with the Consumer Credit Code?
Yes.
Can the OC use this funding for things other than the insurance premium?
No. If you need funds for other purposes, please contact Lannock on 1300 851 585 about our Levy Assist loan.
