The loan lowdown: SCP’s latest deals

Southern Cross Partners is a specialist lender passionate about getting Kiwis from A to B. Whether it’s an equity release for some working capital, a construction project or someone expanding their investment property portfolio, we are here to help Kiwis seize new opportunities.

This month we look at our recent deals and how we may be able to help you help borrowers in similar situations.  

• New build completion. We’re assisting with the completion of a new build in Fendalton, Christchurch. The project is a two-level, six-bedroom, four-bathroom modern residential dwelling with a built-in triple garage currently being built on an 879sqm site. The $2 million loan term is 12 months with a 65% LVR and an interest rate of 11.99% plus fee.
• Equity release. We secured an equity release to help complete a construction project in Remuera, Auckland. The property is 441sqm, and the dwelling will be a three-storey residential dwelling with six bedrooms, four bathrooms and a double garage. The $500,000 loan term is 12 months with a 13% LVR and an interest rate of 8.49% plus fee.
• Investment property. We recently approved a loan to assist with the purchase of a residential investment property in Northpark, Auckland. The property is a 200sqm dwelling with three bedrooms and one bathroom on a 709sqm section, built in 1994. The $900,000 loan term is 12 months, with a 58% LVR and an interest rate of 8.75% plus fee. 

We can tell a lot about a loan when we receive a comprehensive application. Here are some helpful refreshers on what you need in an application to SCP. 

• 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. As you can see above, our LVR’s are conservative. We rarely lend more than 65% of the property’s value. In your application, we need to know how much your client wants to borrow and what their security is worth.
• A clear exit. 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 how this is the case, then we want to hear about it. 

If you have a client in a similar situation, or think we could help your client, please don’t hesitate to get in touch with us. You can either give us a call on 09 535 2239 or email info@scpartners.co.nz.