Top tips for navigating Southern Cross Partners’ Secondary Market investments
Occasionally we have Secondary Market opportunities on the Investor Portal when an investor requires access to their funds earlier than expected. A common question we get is ‘why is the investor selling their loan? So, this month we explore the process behind making these available on the portal.
There are many reasons why investors may need their funds before the loan repays and we offer a Secondary Market service to assist with this. Our most common Secondary Market requests include:
- To help their family into a property or assist with business funds
- To inject capital into their own business
- To purchase a new vehicle
- To complete property renovations
- To purchase an investment property
- To downsize and purchase a retirement unit
- To pay for a holiday
- To cover unexpected expenses
How do I know if a loan on the Investor Portal is being on sold via the Secondary Market?
Loans which are on sold by other investors are available on our Investor Portal to invest in. In the Investments Opportunity section, an available investment will have a ‘(secondary market)’ notation. The details page of these opportunities also contains updated due diligence on the loan details.
The updated information displayed is:
|
Confirmation this is a Secondary Market loan |
|
| Updated loan payment history |
Details the borrowers account conduct throughout the term of the loan to date. For example, if there are any consistent late payments. |
| Loan renewal history (if any) |
Details of any loan renewal if the original loan was extended. |
| Updated credit check |
New credit checks are conducted for any loan renewals and any adverse history is noted here. If the loan is within the original term, no new credit check is required. |
| Updated property value |
We may ask for a new valuation for the security property if the loan has been renewed. The Security Valuation section will display the new valuation details. If the loan is within the original term, the existing valuation remains valid. |
| Related party | If the Secondary Market opportunity is an amount being on sold by Southern Cross Partners or any related entity, this will be disclosed to investors. In addition, a certificate signed by the directors attests there is no additional information the company is aware of that hasn’t been disclosed to investors. |
Do investors on sell loans that are in arrears or subject to a mortgagee sale?
Investors are unable to on sell any loans which:
- Have payment arrears over 30 days
- Have an active hardship application
- Are subject to an active Property Law Act notice
- Have a scheduled mortgagee sale date
- Has expired
We want investors to be confident these are the same quality loans as any of the new loans on offer. That’s why all Secondary Market loans are reviewed before being published on the Portal’s Investment Opportunities to ensure they fit our strict criteria.
If you have any questions about any of the Secondary Market loans listed on the Investor Portal, please do not hesitate to get in touch.
