The loan lowdown: March 2023

This month’s loans cover investment property purchases and property equity releases, helping secure better opportunities for Kiwis and get them from A to B. If you have clients with similar circumstances, do get in touch!

We’re here to help New Zealanders seize new opportunities through short-term specialised loans.
Here are a couple of scenarios we have assisted with recently:

1. Investment property purchase. We’re assisting with the purchase of a residential investment property in Auckland’s Ōrakei. The borrower’s goal is to rent the property out long-term and has secured this property with an existing property valued at $3,680,000. The $1,300,000 loan is on a 6-month loan term with a 36% LVR and an interest rate of 9.25% plus fees*.
   
   
2. Property equity release. We’re supporting a request to release equity of $200,000 plus fees to assist with subdivision resource consent costs. They will secure this against a 1.2 hectare vacant section in Te Kauwhata. The loan term is 24 months with a 22% LVR and an interest rate of 10.49% plus fees*.

Clear and 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 the best finance solution tailored to their needs: 

• 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. 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.  

If you have a client in a similar situation to our two examples, or think we could help your client, please don’t hesitate to get in touch with us.
* All pricing is on a deal by deal basis, please call for any pricing queries.

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.  We'd love to chat.