While it’s no surprise to many, QV’s April House Price Index shows house prices continue to fall. March saw 2023’s largest drop at 1.4%, with April’s average reduction at 0.6%. National average property values now sit just above $900,000, 13.3% down on April 2022 but 22% higher than pre-pandemic prices.
With the market looking to remain on this trajectory, Southern Cross Partners is here to support your borrowers through these times when traditional banks may not. Not only can this pay off for your borrowers, it can pay off for you too.
There are many reasons why the bank won’t lend to a prospective borrower. You know the deal makes sense, but credit constraints, interest rates, or loan specifics don’t quite add up to suit the bank. Many advisers are comfortable turning to specialist lending in this situation. But others not as confident are turning away these loans and losing tens of thousands in commission.
There is no better time than now to expand your skills. Learning about specialist lending will allow you to take those loan opportunities and set yourself up for future lending and a new commission stream.
We specialise in finance for those who can’t necessarily get money from the bank. We pride ourselves on considering loans based on the individual. Where banks focus on the numbers, we take your borrower’s circumstances into account.
The key to loan applications with a specialist lender like SCP, is understanding what your borrower needs the money for, if they can afford repayments, and how they plan to exit the loan agreement. If the loan could sit in the specialist lending space, or if you’re unsure but want to check, we can work out quickly if your client is suitable for lending.
Our specialist lenders also earn higher commission than traditional banks. We pay commission to advisers in full, rather than drip feeding throughout the loan term. So, while you may be feeling the property market pinch, there’s money to be made through specialist lending. It’s all about working with the right people and asking the right questions.
If you would like to discuss specialist lending further and see what we’re looking for, feel free to get in touch. We’re always happy to workshop a potential loan or help you understand the process. You can reach us on 09 535 2239 or info@scpartners.co.nz.