The loan lowdown: November 2023

In the nearly 30 years Southern Cross Partners has been operating we have seen many peaks and troughs in the market. With the small downturn in the housing market now over, we are once again seeing things pick back up.

The uplift in the housing market has positive effects on development and construction too. Over the last month we’ve provided lending for some great loans, here are a few of them:

• Refinance. We have approved a request to refinance a mortgage from an existing lender. The mortgage is for a two-level 1960s residential dwelling in Castor Bay, Auckland. The dwelling consists of four bedrooms, one bathroom and one garage over a floor area of 140sqm. The loan is a 12-month term with a 52% LVR and interest rate of 9.75% plus fees.
• Equity Release. We supported a request to release equity to fund working capital, secured against a recently constructed three-level three-bedroom, two-bathroom attached townhouse with a double integral garage on a floor area of 171 sqm in Mount Maunganui, Bay of Plenty. The loan term was 24 months, with an LVR of 60% and an interest rate of 9.99% plus fees.
• Construction support. We are assisting with the construction of six three-bedroom units in Canterbury. The loan term is 12 months with a 62% LVR and an interest rate of 11.99% plus fees.

The news that the housing market downturn is likely over comes from CoreLogic. Its rolling three-month market tracker recorded its first rise since March 2022 – jumping 0.4% in October.

With prices moving back into the green, along with factors such as governmental policy and migration leading to population growth, economists are tipping demand to keep increasing.

If you’ve got a loan that you think could work for us, please reach out to our friendly team to see how we can help you and your clients.