A CLOSER LOOK AT WHAT WE CAN DO FOR YOU
HOME MORTGAGE FINANCE
Finance for customers purchasing their own homes still remains a core focus of our business. Getting the right deal at the right price is critical for reducing interest costs and paying off your home loan quicker.
PROPERTY INVESTMENT FINANCE
Property investment is still the most common form of wealth creation for most New Zealanders. Understanding value, correct debt structuring and tax implications is critical in putting together the right finance package.
Given the fluid nature of business and changing times, all businesses are looking for working capital at some time or another who fall outside of standard banking criteria. Having someone who knows how to structure loans and who to approach in this situation can be life-saving. Or it may simply be a business acquisition or a significant plant or machinery purchase that is specialised and requires the right finance solution.
Development finance is an area that banks have tightened up on considerably and in some areas have left the market. Having somebody who knows how to put applications together, who to approach given the viability of the project and level of pre-sales is crucial. With a smaller pool of institutional lenders, the importance of a private network of funders and mezzanine funding is essential to unlocking projects.
In dynamic market conditions, it is not always possible to time property purchases before other properties can be sold. For example, purchasing the right family home before your existing home is sold, purchasing an investment property before another is sold or a development proposal that is too good to pass up before existing projects have been settled. This cross-over may take you outside bank/finance company criteria and may need specialist bridging finance or a different bank perspective to get the transaction across the line.
The banks have tightened up considerably and length of tenure or loyalty is no longer a guarantee of support when you fall outside of standard banking criteria. Whether it is a business aberration and reduced profitability or a redundancy in the family, or simply a change of lending policy at the bank, it can be very frightening when the bank (or several banks) says no. Having somebody who knows where to go and how to put the deal together to get the best available pricing given the circumstances is very important.
Given the global financial crisis, this type of funding has become difficult to find and very expensive. When you have a good project with decent levels of presales, this type of funding can be critical to getting the project off the ground. Often this is the domain of private lenders and individuals and knowing who and how to contact these individuals can give a project life that otherwise wouldn’t get off the ground.
Financial institutions have long been resistant to funding tax liabilities and the request of this type of funding especially if there is significant arrears can affect commercial relationships with funders. Knowing how to frame these liabilities and who to approach to find solutions is an essential component of what we do. Anyone who has been in business for a long time has experienced some kind of timing or funding shortfall with tax commitments at one time or another.
In the current dynamic market conditions sometimes standard financial institutions simply don’t have the capacity to fund deposits quickly enough to enable people to capitalise on unconditional deals. This requires outside funding sources to temporarily bridge the gap to enable transactions to happen, or it may need an application for urgent finance put together quickly in a format that keeps the transaction moving.