The loan lowdown: June 2023

At Southern Cross Partners, we're all about helping people seize new opportunities with our short-term specialist loans.

This month, we've supported advisers with a range of loans. Our goal is to help your clients reach their financial goal while also supporting you with a range of specialist loan options. If you have clients in similar situations, feel free to reach out.

Let's take a closer look at a couple of recent scenarios:

1. Residential refinance. We’re refinancing an existing loan from another lender for three new dwellings in Auckland. The three sites consist of a two-storey, four-bedroom house with two bathrooms, two living areas, and double car garaging. The loan term is 18 months with a 20% LVR and an interest rate of 9.25% plus fees.
   
   
2. Lifestyle block purchase. We’re assisting with the purchase of a lifestyle block. It’s a 130sqm property on a 7.35-hectare section in Christchurch. The home is a two-storey, four-bedroom property with two bathrooms, and is well-fenced and surrounded by paddock. The loan term is 24 months with a 45% LVR and a 9.85% interest rate plus fee.
   
   
3. Construction support. We’re working with a developer to fund the construction of two single-level duplex dwellings in Wanaka. On completion, each house will have three bedrooms, two bathrooms with a separate toilet, open plan living, and an integrated double garage. Currently situated on one 900sqm site, it will be split into two 400sqm lots. The loan term is 12 months with a 40% LVR and an interest rate of 11.49% plus fees.

To ensure a smooth loan process, here are some tips on what we need in an application at SCP. This way, we can provide your customers with the best finance solution tailored to their needs:

• LVR. The Loan-to-Value Ratio (LVR) helps us determine the size of the mortgage compared to the property's resale value. When you apply, make sure to include the borrowing amount and what the property's worth.
• A clear exit. As a short-term lender, we need to know how and when your borrowers plan to repay their loan. Whether it's through property sale or refinancing with a traditional bank, a well-defined exit strategy is essential to ensure success.
• Your borrower's situation. We want to know how having a loan with SCP will benefit the borrower. Share their background and explain why teaming up with us is the right move for their financial goals.

If you have clients in situations like the examples mentioned or believe we can assist your borrower, don't hesitate to get in touch.

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

We're always ready to collaborate with advisers, so if you have an application that needs some brainstorming, give us a call at 09 535 2239 or shoot us an email at info@scpartners.co.nz.