Financial adviser must read: SCP’s 2023 lending focus

This year we look forward to connecting with new and existing brokers who come to us with their client’s needs. Our mission is to help Kiwis get from A to B and ensuring they exit a loan with us better off.  

In 2022 we saw record-breaking growth in residential construction costs. However, CoreLogic’s latest data shows this growth may be easing. In Q4 2022 construction costs increased by only 1.7%, compared with a 3.4% increase in the previous quarter. We anticipate this trend will continue as economic uncertainty continues through 2023. 

We expect to see an increase in borrowers coming to us with equity releases in 2023 and this is something we’d love to help your clients with.  

• We have borrowers coming to us to raise equity against their property for business capital to expand business operations.  
• Leveraging a property’s equity is also a useful way for borrowers to assist with business tax payments.  
• It is also useful for property investors, who can release equity against an existing investment property to expand their property portfolio. 

Typically, SCP provides loans in major cities, but we’re also open to other centres across New Zealand.  

We’re back on deck and welcoming your loan applications. We can tell a lot about a loan by the application. With every application we look to see if the below is included: 

• LVR. In your application, we need to know how much your client wants to borrow and what their security is worth and a valuation method to support this. 

• A clear exit. We need to know how the borrower is going to exit their loan and that they’ll be better off for it. This could be through selling the property or refinancing with another lender.  
• The borrower’s situation. The key thing we want to know is if the borrower will be in a better position if they have a loan with SCP. If you can outline how this is the case, then we want to know. 

SCP lends on a huge range of circumstances and we’re happy to workshop how loans could work. We thoroughly enjoy speaking to financial advisers to understand the type of loans you’re working on, so don’t ever hesitate to give our friendly team a call anytime on 09 535 2239.