The loan lowdown: August 2023

At Southern Cross Partners, we like nothing more than to see clients achieve their financial goals.  

For nearly three decades we’ve been providing specialist bridging loans to clients whose situations don’t quite fit bank lending.  

We’ve seen plenty of new deals throughout the last few months, and August has been no exception. Here’s the latest lowdown on some of our loans: 

• Property purchase. We are assisting a company entity with the purchase of a residential investment property in Miramar, Wellington. The property is a 100sqm dwelling built in 1947 with three bedrooms and one bathroom on a 371sqm section. The loan term is 12 months, with a 61% LVR and an interest rate of 9.35% plus fee. 
• Refinance. We approved a request to refinance an existing loan from a private lender on a residential investment property in Milford, Auckland. The property is a 1948 single-level weatherboard and tile home that has been extended and modernised. The loan term is 12 months, with a 63% LVR and an interest rate of 10.25% plus fee. 
• Equity release: We supported a request to release equity of $200,000 plus fees to assist with subdivision resource consent costs in Pukekohe, Auckland, secured against a 1.2-hectare vacant section in Te Kauwhata, Waikato. The loan term was 24 months, with a LVR of 22% and an interest rate of 10.49% plus fees.

One thing all these loans have in common is that they have a clear exit. When you come to us with a loan, one of the questions we will always ask is ‘how will your borrower exit the loan, and will they be better off for it?’ 

Our aim is to help borrowers take the leap they seek and land them safely on the other side. Understanding how your borrower plans to land safely and repay their loan with us is what we call a clear exit. 

When you apply for an SCP loan, ensure your client’s exit strategy is outlined in the application. A borrower can exit a loan in many ways, such as payment from funds derived from other sources, the sale of the security property or other assets, or a refinance to another lender.

We lend on a range of deals like the above and we thoroughly enjoy speaking to advisers to understand the type of loans you’re working on. So don’t hesitate to give one of our BDM’s a call or you can reach us on 09 535 2239 or loans@scpartners.co.nz.