The loan lowdown: February 2023

Southern Cross Partners is a specialist lender passionate about getting Kiwis from A to B with flexible finance. Whether it’s an equity release for some working capital, a construction project or someone expanding their investment property portfolio, we are here to help Kiwis seize new opportunities. 

Here are some of our recent deals and how we may be able to help you help borrowers in similar situations.   

1. Townhouse refinance. We’re assisting with the refinance of five newly built townhouses in Wesley, Auckland. The property comprises five brand new, free standing, three-level townhouses, offering four bedrooms and four bathrooms with a single internal garage, situated on a 144sqm section. The $3.25 million loan term is 12 months with a 63% LVR and an interest rate of 9.99% plus fee.  

1. Refinance for renovation. We approved a request to refinance an existing loan with another provider to consolidate debts, cover legal fees, and complete non-structural renovations on a property in St Johns, Auckland. SCP’s loan security is against a property in Onehunga, Auckland, comprising a refurbished 1940s dwelling that provides two bedroom and one bathroom accommodation. The $1.22 million loan term is 6 months with a 56% LVR an interest rate of 9.75% plus fee. 

1. Investment property renovation. We’re supporting the renovation of a residential investment property in Strathmore Park, Wellington. The borrower will complete cosmetic prior to relisting for sale. The $311,000 loan term is 12 months with a 60% LVR and an interest rate of 9.75% plus fee. 

Comprehensive applications from advisers are key to our loan process at SCP. Here are some helpful refreshers on what you need in an application to SCP, so you can help your customers get from A to B: 

• LVR. The ratio between the size of someone’s mortgage and the property’s resale value, known as the loan-to-value ratio (LVR), ensures we have a buffer in case of any headwinds. As you can see above, our LVR’s are conservative. We rarely lend more than 65% of the property’s value. In your application, we need to know how much your client wants to borrow and what their security is worth. 

• A clear exit. We must also know how and when the borrower is going to exit their loan with us. This could be through selling the property or refinancing with a traditional bank. We also need to ensure they’ll be better off for it.  
• 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 hear about it.  

If you have a client in a similar situation, or think we could help your client, please don’t hesitate to get in touch with us. You can either give us a call on 09 535 2239 or email info@scpartners.co.nz.