The loan lowdown: July 2023

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

From construction projects to expanding investment property portfolios, we want to help our clients seize new opportunities through our specialist bridging loans. 

We’ve helped a range of clients seize new opportunities this month. Here is the lowdown on some of the loans SCP has been lending on in July:  

• Construction support. We’re assisting with the construction of a duplex in Hamilton. The project consists of six, two-level, dwellings, each providing either a three-bedroom, two-bathroom or four-bedroom, three-bathroom layout. The loan term is 12 months with a 65% LVR and an interest rate of 11.99% plus fee.  
• Refinance and equity release. We approved a request to refinance an existing loan and an equity release for business purposes. SCP’s loan security is against a property in Auckland, comprising a two-level timber weatherboard and Colorsteel clad dwelling, providing five-bedroom accommodation including a master bedroom with walk-in wardrobe and ensuite, and guest bedroom with ensuite. The loan term is 12 months with a 59% LVR and an interest rate of 9.49% plus fee.  
• Property purchase. We are supporting the purchase of a residential property in Christchurch. The property is a 130 sqm dwelling built in 1915. It provides three bedrooms and two bathrooms on a 602 m2 section. The loan term is 12 months with a 39% LVR and an interest rate of 9.5% plus fee.  
• Specialist commercial. We assisted with the purchase of a two-storey 1980s, 664m2 office unit in a well-known industrial area. The loan term is 24 months with a 50% LVR and an interest rate of 10.25% plus fee. 

The above are just some examples of the loans we lend on. When assessing loans, we like to receive a comprehensive application. Below are some of the things we look for in loan applications. 

• LVR. In your application, we need to know how much your client wants to borrow, 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. 

We thoroughly enjoy speaking to advisers to understand the type of loans you’re working on, so don’t ever hesitate to call one of our BDM’s or you can reach us on 09 535 2239 or email loans@scpartners.co.nz.