The loan lowdown: October 2023

Southern Cross Partners has been helping Kiwis get from A to B through specialist lending for nearly three decades now.

Over that time, we’ve seen many trends emerge in the market. One trend we often see is a steady increase in advisers coming to us with new loans in the final quarter of the calendar year. This one is no different.

Here’s a quick look at some of the loans we’ve received as we reach the tail end of the year.

• Equity release. We’re supporting a request to release equity on four newly completed, three-level standalone dwellings in Auckland, with a land area of 197 sqm. The loan term is 12 months, with a 60% LVR and an interest rate of 9.49% plus fees.
• Property purchase. We are assisting a company with the purchase of a residential investment property in Havelock North, Hawkes Bay. The property is a 2-bedroom, 2-bathroom dwelling built in 1960 and sits on an 849 sqm section. The loan term is 12 months, with an LVR of 61% and an interest rate of 9.25% plus fees.
• Construction support. We are assisting a company with the construction of six new units, in the suburb of Phillipstown, Christchurch. The loan term is 9 months with an LVR of 49% and an interest rate of 11.50% plus fees.

Although these loans are for different projects, it’s likely the application for each will have included the same information. Here are a few things we need from you when you send an application on behalf of your borrower:

• The borrowing entity’s name
• The borrower’s security address
• The funds required
• The purpose of the funds
• The anticipated loan term
• The exit strategy
• The application and borrower background
• The settlement date or requested drawdown date
• Your broker fees

In the application process, we will also need a fully completed Statement of Financial Position, a Sale and Purchase agreement if it's applicable and in some cases, we also require a valuation.

We’ve recently developed a brochure, with details on the types of loans we offer and our application process. If you’d like to know more details about how to secure property finance with SCP you can download it here.

If you’ve got a deal like one of the above, please don’t hesitate to reach out on 09 535 2239 or loans@scpartners.co.nz or directly to one of our friendly BDMs. We are always happy to workshop any deals you may have.