The loan lowdown: January 2024

In this instalment of the Loan Lowdown, we look at an investment property purchase in Auckland, a refinance in Wellington and a construction project in Christchurch. Check out more in the Loan Lowdown below.

While the summer months tend to be quiet for the real estate and development markets, we’ve been busy securing new loans at SCP. Here are some of our most recent deals:

• Investment property purchase – We supported an individual to settle on a residential investment property in Remuera, Auckland. The 244sqm property consists of four bedrooms and three bathrooms. The loan term was six months, with a 40% LVR and an interest rate of 9.85% plus fee.
• Refinance – We supported a request to refinance an existing first mortgage from a private lender, complete a subdivision of the security property, support the construction of a shed and purchase business equipment. The security property is a recently completed 318sqm single-level dwelling in Wellington. The loan term is 12 months, with an LVR of 33% and interest rate of 9.99% plus fee.
• Construction support – We are supporting a company with the construction of four units in Casebrook, Christchurch. The units will comprise of two bedrooms and one bathroom, with a single garage each. The loan term is 12 months, with an LVR of 55% and an interest rate of 11.99% plus fee.

Each loan above will have started with an application to SCP, and a chat with one of our BDMs. Here are some refreshers on what you need to include in an application to SCP, so it is easy for you to help your clients get specialist property finance tailored to their needs:

• LVR. The ratio between the size of a property’s mortgage and its resale value, known as the loan-to-value ratio (LVR), ensures we have a buffer in case of any headwinds. In your application, we need to know how much your client wants to borrow and what their security is worth.
• A clear exit. We are a short-term lender, so 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 their background and how this is the case, then we want to hear about it. 

*All pricing is on a deal-by-deal basis, please call for any pricing queries.

If you have a client in a similar situation to our example loans this month, or think you have another deal for us, please don’t hesitate to get in touch.

We’re happy to workshop situations with advisers too, so if you have a client application you are not sure about, please give us a call on 09 535 2239 or email info@scpartners.co.nz.