Not only have mainstream banks had their property funding appetite curbed by new credit restrictions, but borrowers are increasingly being turned off by the layers of bureaucracy and the digitised environment now characteristic of most major banks.
So why non-banks and what makes us different?
As New Zealand’s largest first-mortgage non-bank lender, we are well placed to explain the approach that non-banks bring to the market.
Firstly, unlike mainstream banks, we are not singularly focused on debt servicing and cashflow.
Instead, we will look at the opportunity itself and consider things such as the location, the property, the credentials of the borrower and the exit plan whether that be the sell down of the asset or possibly a refinance back to mainstream lender.
We’ll be asking questions like:
Secondly, our timelines for lending are a lot shorter than traditional banks.
For example, at FMT the average loan duration is 1-2 years. This signals to the market that we are focused on tailoring solutions for clients, to help them achieve their specific property related goal. We prefer this approach because it ensures our loan book is current and it means we’re always refreshing our lending terms and staying aligned with the market.
Thirdly, we put a great deal of emphasis on the end scenario, with strong property fundamentals driving every decision we make.
Of course, we have lending requirements which are outlined in our Statement of Investment Policies and Objectives, but overall, we have greater flexibility to structure a tailored solution for individual funding requests.
If you are an adviser or you are looking for funding that does not fit the current banking guidelines, then please talk to us.
We are actively seeking property and development funding opportunities for quality borrowers in quality locations throughout New Zealand.
Contact our lending team to learn more.
Please note, this is just a guide and we recommend you seek professional tax advice.
Disclaimer – The results above are subject to the following assumptions:
- The investor’s main source of non-investment income is New Zealand superannuation on a non-shared living arrangement. That is taxable income between $14,000 and $48,000.
- FMT is your main investment and that you wish to have a single investment in FMT.
- This is a simple guide only. There are alternative strategies which may provide better outcomes. These are on case-by-case basis.
Should you want to fully canvas your options, we strongly recommend you seek independent advice from your Tax Adviser.