Upcoming Investment opportunities & how we qualify them

In the lead-up to the holiday period, we tend to see our loan pipeline gather lots of momentum at SCP. Even with an election in the mix, this year will be no different.

Spring is here and we’re already seeing our loan pipeline building momentum. We’ve got approximately $35 million of loans to settle in the next two months.

As we roll into October, November and December, our Business Development Managers (BDMs) are reporting a steady increase in loan enquiries from advisers. Everyone wants to get in before Christmas!

So, what's coming up?

Here's a snapshot of investment opportunities that will soon appear on the portal:
 

• Refinance. We’re assisting with the refinance of a newly constructed investment unit in Newlands, Wellington. The loan term is 14 months, with a 65% loan-to-value ratio (LVR). Investment rate 7.50%*
• Equity release. We’re supporting a request to release equity on three recently completed residential investment properties in Edgeware, Christchurch to purchase a commercial property. The loan term is 12 months, with a 70% LVR. Investment rate 7.75%*
• Investment property purchase. We’re providing funds to purchase a residential investment property in Massey, Auckland. The loan term is 12 months, with a 55% LVR. Investment rate 7.35%*
• Low-geared equity release. We’re assisting a repeat borrower of SCP, who has good account conduct to release equity against eight recently completed, standalone townhouses, in Taupiri, Waikato. The loan term is 12 months, and the LVR is 18%, due to the loan having a low geared ratio. Investment rate 7.50%*
• Construction We’re supporting the build of two single-level, semi-detached, three-bedroom dwellings in Rolleston, Canterbury. The loan term is 12 months, with a total completed LVR of 42%. Investment Rate 8.05%*

*All rates and details quoted are subject to change.

How do we qualify loans before we lend on them?

We sent out a survey to our investor community in the July newsletter, and one of the questions you asked us was how we qualify loans before we lend on them.

Most of our loans come to us from registered financial advisers who present an application on behalf of their clients for us to consider. One of the items they must provide us in their application is a Statement of Position (SOP) for the borrowers.

This statement contains their contact details and identifying information like dates of birth. It also contains a list of their expenses and income, plus all their liabilities, such as other mortgages, loans and credit cards as well as a list of other property assets.

By reviewing their SOP, we can ascertain how strong the borrower's financial position is, what assets they have behind them and how that compares to their liabilities. It also lets us know the level and type of income they have, so we can be sure they can service loan payments. This means we can be confident in the applicants as borrowers.

The SOP is a key component of the application process, and helps us qualify loans before we lend on them. If you have any other questions about the loans we offer and how we qualify loans, please head over to the portal or contact us at investments@scpartners.co.nz.