Frequently Asked Questions | Global Pacific Capital Ltd
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Frequently Asked Questions

What are non bank interest rates currently at?

Non Bank interest rates vary from the lower end of the scale at 6.25%, for trustee lenders, up to 12-13% for finance companies.

Can I borrow money interest only?

Yes, you can Banks will provide interest only facilities, generally limited to 2-3 years and most non bank facilities are interest only.

My Bank won’t fund my development project, are there other options?

Yes, Banks have been steadily reducing their exposure to this market over the past number of years. This space is now being filled by specialist property development financiers, trustee lenders and even High Net worth individuals.

I have purchased another house & not sold my existing house, so my Bank won’t help me, are there other options?

To get money from a Bank you have to fir into a reasonably restrictive box- certain level of equity and income, being the main 2. There are a number of non Bank funders who will provide bridging finance until you sell your existing house. They will even consider capitalising your interest payments for the period of the loan.

What level do non Bank financiers fees go to?

This depends on the transaction, however run from 0.5%-over 2.0% as a guide. Non Bank lenders look for a certain return on their investment into a deal.

I have a business and want to purchase the building I currently lease.

It is possible to use the value of your business to provide equity to assist with a property purchase. The level you can go to is determined by the asset value of your business.

What sort of loan term will non Bank lenders provide?

We have lenders who will only finance to 12 months, some 2-3 years & others up to 5 years. But there aren’t many who will go longer than that.

Is Offshore Finance available?

It is possible to borrow in a foreign currency, but generally only when you have a natural hedge (cover). Something like a business that exports and gets paid in US dollars, so can use that to service a US dollar loan. We have access to a number of offshore based funders, but they all lend and price in NZ dollars.

Can I get finance terms without providing a huge amount of information?

We are generally able to provide Indicative Terms from a short overview of a transaction.

Do I need a Registered Valuation to borrow money on my property?

We have funders who will provide mortgages against properties without the need for a Registered valuation, this is dependent on gearing, type of property and location. They will use the Council Valuation as a guide.

Can I get a development facility for my residential development facility without a whole lot of pre-sales?
Can interest be built into my loan?

Yes, Interest can be added to the loan providing there is sufficient security, the term is called a capitalised interest facility.

What fees are charged?

All non-bank lenders charge a fee, this ranges from 1-3% for a 12 month term and is added to the loan, brokerage fees of 1-1.5% are also charged for arranging the funds and are also added to the loan.

What is AML?

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 is designed to help detect and deter money laundering and terrorism financing.

 

Under the law all lenders in New Zealand are required to do more to verify a customer’s identity ,address and financial transaction.

 

Refer to the Department of Internal affairs link below for further information.

 

https://www.dia.govt.nz/AML-CFT-Homepage

Do I need independent legal advice?

In most cases yes, formal loan offers that have been signed have obligations that you are bound to, if you do not understand clearly the terms presented it is best to seek legal advice.

What is a registered valuation?

A valuation report involves a registered valuer visiting the property to assess the market value of an asset. They will conduct a full inspection of the property and look at the property’s title, council zoning maps and other comparable property sales. A registered valuation report is relied upon by Banks and non-bank lenders for security purposes and lending and should be no more than 3 months old.

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