Simple, competitive property funding solutions
Since 2004, ASAP Finance has been helping investors, builders, developers and other property clients with competitive and commercially viable property finance. Our experience and expertise means we can help you achieve your property goals.
With simple, competitive funding solutions, we can help make your next project a success. Because we’re one of the largest non-bank property financiers in New Zealand, we can often get a project off the ground even when the banks and other lenders cannot.
Property Finance
ASAP Finance makes property finance easy. Unlike banks, we work with our clients on a personal level; so, we’re able to make decisions based on our experience - rather than getting bogged down in standard lending criteria like pre-sales, quantity surveyor reports and valuations.
Talk to us for first mortgage finance on residential and commercial properties. We also offer development finance, including funding subdivisions, residential dwelling construction, multi-unit construction, apartments, and commercial or industrial buildings.
Underwrites
Banks typically require a certain number of pre-sales before they will even consider financing a development project. This makes the job of the developer harder - pre-sales can be time-consuming and difficult to secure. As a developer, you are often forced to give discounts thereby setting a benchmark for prices. This can make it hard to increase prices on subsequent sales and affect the overall profitability of your project.
Many banks will accept underwriting as an alternative to pre-sales, which makes it a great option for developers trying to secure bank funding for development projects.
Joint Ventures & Private Equity
ASAP Finance has a strong history of success in joint property ventures. We work with developers who find viable development opportunities but lack the equity to put into the project. While Banks and other financial institutions won’t take on these projects, we may be able to partner with the developer and complete the development.
Rather than passing up the opportunity, we are able to provide the equity and expertise needed to get the project completed.
Innovative, experienced, professional: The ASAP Team
The ASAP team has a reputation for innovative financial solutions and impeccable professionalism. That reputation comes from experience - the main members of the team have been in the property and property finance business for over twenty five years.
Hemat has over 42 years of business experience. He graduated from the University of Auckland in 1972 with a Bachelor of Commerce in accounting and returned to Fiji where he started a retailing and wholesaling business – RB Patel Group Limited (RBPG) - with an initial paid up capital of $4,000.
Hemat spent over 30 years working with RBPG. Today, the company has a turnover in excess of FJ$100m, employs over 600 staff and is listed on the South Pacific Stock Exchange with a market capitalisation of $75.6m.
Hemat's shares in the business were sold in 2003 and he is now based in New Zealand. While in Fiji, Hemat also served as a director of Air Pacific from 1982 - 1983.
Adarsh has a diverse background in finance, property and business. As an executive director of ASAP Finance he has been involved in funding hundreds of millions of dollars in property loans.
Adarsh has also personally owned, managed and developed over $100m in property. This experience is invaluable in understanding clients' funding requirements and in assessing the merits of each property opportunity
Adarsh holds a Bachelor of Commerce and Law degree from Auckland University and has previously worked at KPMG, Merrill Lynch, Morgan Stanley Dean Witter and as a director of RB Patel Group Limited.
Darpan completed a BCom (Hons) LLB from Auckland University in 1999.
Since then he has worked in investment banking, property finance, property investment and development, and general business.
Through ASAP Finance, he has been involved in over $500m of property.
He has also undertaken many commercial and residential property development projects throughout New Zealand.
Darpan's general business experience includes past directorships at OCG Consulting Limited and RB Patel Group Limited.
Parash has been in various professional roles since 2001 across different industries including property finance, retail and market research.
Prior to arriving in New Zealand in 2008, he worked in Mumbai (India) and Fiji. He has been in the property finance industry since 2008 and is an active property investor.
Parash holds a Bachelor of Commerce degree and a Post Graduate Diploma in Business Administration.
Outside of work, Parash is an avid sports fan and spends most weekends either playing or watching sport.
Kevin has been in the property finance industry since 2012. Prior to his current position, he worked in finance and retail.
Kevin has a post graduate degree in finance from Massey University.
He is fluent in English and Mandarin.
Before joining ASAP Finance, Dan worked in financial derivatives trading for more than three years.
He holds a bachelor's degree in finance from Massey University.
Dan is fluent in English, Mandarin and Cantonese.
Property finance with a difference
At ASAP Finance, we take the time to understand your individual lending requirements, rather than just ticking boxes. Our clients include investors, developers, builders, and self-employed business owners. Many of our clients have been turned down by banks for reasons including credit history, not meeting servicing ratios, or being unable to meet pre-sale requirements.
We choose not to focus on these standard bank parameters, and instead use the physical value of the asset such as residential dwellings, land and commercial property to make our decision.
We provide borrowers with:
- Fast and hassle free loan approvals
- Competitive interest rates
- Tailor-made loans to suit each client
- Flexible repayment options
Our loans include:
- Residential Loans
- Commercial & Industrial Loans
- Bridging Loans
- Development & Subdivision Finance
- Bare Land Finance
General Lending Criteria
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 75%
- Maximum Loan Term: 12 months (roll over may be possible on maturity)
- A registered valuation may not be required in certain cases.
- All loans must be secured by a mortgage.
Fees
Our only fee is an application fee of 2% plus brokerage. There are no additional hidden fees or charges.
That means:
- No Minimum Lending Fee
- No Early Repayment Fee subject to 30 days' notice
- No site visit fee
- No monthly administration fee
- No line fee
Legal Costs
We will give you a fixed quote for legal fees in our Letter of Offer. Typically, for a standard loan secured on a single residential property, this will be $1,600 plus GST and disbursements.
We provide first mortgages to residential investors, including those who may not be able to make regular loan/interest payments or those with minor credit blemishes.
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 75%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
To apply download an application form and send it by email or fax
If you’re trying to borrow against a commercial or industrial property, we can help. We provide first mortgage finance for clients, including owner occupied properties.
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 70%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
To apply download an application form and send it by email or fax
Sometimes, the settlement date of a property being purchased doesn’t line up with the settlement of a property being sold. Bridging loans solve this problem so you can settle on a purchased property without having to wait for settlement of the property that you have sold.
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 75%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
To apply download an application form and send it by email or fax
We provide first mortgage development and subdivision finance for residential, commercial or industrial properties to clients on the following terms.
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 75%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
To apply download an application form and send it by email or fax
It can be difficult to get finance on undeveloped land. We provide first mortgage finance to clients borrowing against residential or commercial blocks or sections.
For Blocks
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 65%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
For Sections
- Minimum Loan: $150,000
- Maximum Loan: $20,000,000
- Maximum LVR: 70%
- Maximum Term: 12 months
- Interest Rate: From 7.95% p.a.
- Fees: 2% plus Brokerage
To apply download an application form and send it by email or fax
Underwrites: Helping developers secure bank finance
Underwriting can help you secure mainstream funding for your building or development project by removing the need for pre-sales.
Why pre-sales can be a problem
Typically, banks require a specific number of pre-sales before funding a development project. This can make things difficult for you as a developer. Most people prefer purchasing a completed product, be it a section, townhouse or apartment. It’s often difficult to find buyers willing to pay top price on the basis of concept plans and drawings. This means that a developer is forced to give discounts. This doesn’t just cost you in the short term, but can set the benchmark for future sales, making it hard to get buyers willing to pay higher prices once the development is complete. This can often have big implications; for example an increase of $10,000 per section on a 100 lot subdivision is an additional $1 million dollar in profit. But if the developer has achieved pre-sales at a certain price, it is quite difficult to convince other buyers to pay more.
The underwriting option
Underwriting works by reducing or eliminating the need for pre-sales. The underwriter agrees to purchase a specific number of properties in the development at a mutually agreed price (usually 70 to 80% of market value). If you are unable to sell these properties by a specific date (Termination Date), the underwriter we’ll be required to settle the underwritten properties.
The underwriter will charge you a fee for this service, and will deposit a portion of the underwritten price with the bank as a performance bond.
Why underwriting works:
Underwriting has the advantage of working for both the bank and the property developer.
For the bank, underwriting ensures that even if the developer is not able to sell the completed product, a specific number of properties will be sold to the underwriter thereby reducing residual debt on the development.
As a developer, you benefit because you don’t have to pre-sell at a discount. This means that you are able to complete the project and sell at full market value, and maximize the profit on the development. This is especially beneficial in a rising market as the market value on completion will be higher than pre-sale prices.
ASAP- a trusted underwriter
Underwriting only works when the bank trusts the underwriter to perform in the event the underwrite is called up. Because ASAP Finance has worked with most of the major trading banks in New Zealand, we’re a known and trusted underwriter.
General Underwrite Criteria
- Minimum Amount: $100,000
- Maximum Amount: $20 million
- Underwrite Price: 70% - 80% of market value
- Underwrite Fees: 4% - 5% plus brokerage
- Property Type: Sections, houses, apartments, town houses
Joint Ventures & Private Equity
Joint ventures and private equity can help investors or developers who don’t have the equity they need to take advantage of a property opportunity. At ASAP, we take on select joint venture arrangements for development projects.
Our projects range from land subdivision, to constructing residential dwellings or apartments, to commercial developments. We assess each joint venture proposal on its individual merits, but there are some key parameters that we consider when making the decision.
Key joint venture parameters:
Experience and expertise
We only choose to work with joint venture partners who have proven to have the skill and capability to deliver a project from inception to completion.
Ethics
We choose to operate in an ethical manner and will only partner with investors who share the same values. This means people with an unblemished history and strong business ethics. In the unlikely event that a development project runs into financial difficulty, we believe in paying our debts rather than hiding behind a limited liability company.
Location
We only take on projects located in the major New Zealand cities.
Project type
We’re residential and commercial property experts, so we focus on those areas when it comes to joint ventures. We don’t invest in high-risk ventures such as farms, hotels, or irrigation projects.
Risks and returns
Like any equity investor, we assess the risk and return parameters for every project. We’ll complete a detailed risk assessment before entering a joint venture.
Check Out Our Case Studies
Background
The clients are developers who purchased a property (in three titles) in Auckland in one of the central suburbs. The current usage was a mixture of commercial and retail and the property could be developed for more intensive commercial and residential use in the future subject to obtaining a resource consent. The clients wanted to borrow 75% of their purchase price.
Our View
The Property was very well located and would be suitable for an intensive development. Although the LVR at 75% was higher than our usual criteria for a development asset, we believed that the clients had bought the property reasonably well which was also supported by a registered valuation. The clients were also experienced developers.
Security Offered
Business and Residential property in three separate titles located in the suburb of Point Chevalier in Auckland.
Loan Amount
$2,062,500
LVR
75%
Loan Type
Capitalised Interest only term Loan.
Loan Term
6 Months.
Exit Strategy
Post settlement, the client would obtain a resource consent for an intensive development on the site. Once all consents are obtained, they will either look to commence development via funding from the bank or sell the property as a consented development block.
Background
The client is a developer who purchased a development property in central Auckland with the intention of completing a 6 townhouse development.
The client applied for development funding and the LVR would be 70%. The client did not want to obtain presales as the market was rising and he believed that a completed product would sell at a much better price.
Our View
The Property was very well located, the client was an experienced developer whom we had funded before and the saleability of the completed product would be very good.
Security Offered
Residential development block in Remuera, Auckland.
Loan Amount
$6,600,000
LVR
70%
Loan Type
Capitalised Interest only term Loan.
Loan Term
12 Months.
Exit Strategy
The client would complete the development and sell down the units. In the event the units are not sold down by the time the loan matures, he will refinance the completed units to the bank and gradually sell down.
Background
The client is a developer who purchased a large development block in Christchurch with the intention of completing a staged development.
The initial application was for a "land bank" facility to assist with settlement of the land purchase followed by "development funding" to complete stage 1&2 of the development comprising a total of 120 sections. The LVR would be 65%.
Although the client had presales the bank wasn't keen to fund a green field development and were putting too many hurdles in front of the client.
Our View
The Property was well located in the suburb of Lincoln, there were good presales, the client had decent amount of equity and there was a genuine demand for sections in that location. The client was also using some of the top consultants and contactors.
Security Offered
Development block in Lincoln, Christchurch.
Loan Amount
$19,000,000
LVR
65%
Loan Type
Capitalised Interest only term Loan.
Loan Term
12 Months with the option to rollover for a further 12 months.
Exit Strategy
The client would complete the development the presales would settle which will bring down the LVR to below 50%. At that point the client would refinance to the bank and seek funding for the balance stages.
Background
The client is a real estate agent who had teamed with a developer to purchase a property in Auckland.
The current usage was as a rural lifestyle residential property but the property was located within a "Special Housing Area" by the council that would allow more intensive residential development in the future.
The application was for a "land bank" facility to assist with settlement of the land purchase. LVR required was 70%.
The clients did not have the necessary financials to provide the bank with the comfort required to fund the purchase.
Our View
The Property was well located, the future potential was obvious and the client was putting in decent amount of equity. Moreover there was an existing house on the property which was tenanted and was proving on going cash flow for the client.
Security Offered
Rural, lifestyle property in Pukekohe, Auckland.
Loan Amount
$1,125,000
LVR
70%
Loan Type
Interest only term Loan.
Loan Term
6 Months.
Exit Strategy
The client would look to obtain a Resource consent for 23 lot development by taking advantage of the "Special Housing Area" status of the land. Once consent is obtained he would seek development funding with the bank or with ASAP Finance to complete the development.
The alternate strategy would be to carve out the existing dwelling on the property under a separate title and sell that down to reduce the debt. At that stage the property would be bankable as the debt would be below 50%.
Background
The client is a developer who had purchased a partially complete development in Wellington with the intention of completing the development and selling down the units.
The application was for a facility to settle the purchase the land and complete the development. LVR required was 72%.
The bank was not prepared to fund a partially completed development.
Our View
The client had high net worth and we had funded him before for other development projects. He also had the experience of purchasing partially completed developments and taking those to completion. The client was also using a new builder with a fixed price contract and was keen to use a Quantity Surveyor to ensure that all costs were checked and certified.
Security Offered
Partially completed townhouse development in Johnsonville, Wellington.
Loan Amount
$1,750,000
LVR
72%
Loan Type
Interest only term Loan.
Loan Term
12 Months.
Exit Strategy
The client will complete the development and sell down the units. In the event that the client does not obtain his asking price from the market he will rent the units and retain them as long term residential investments.
Frequently Asked Questions
Yes. You can pay your loan early - in part or in full. As long as you give us 30 days’ notice before you make a payment, you won’t need to pay an early repayment fee.
The amount you can borrow depends on your security, earnings, and the value of the asset. We can lend up to 75% of the value, depending on location and security.
Our minimum loan is $150,000, and we can lend up to $20 million on a single loan.
Although we charge an application fee of 2% (plus brokerage if applicable) this is usually added to the loan so you don’t have to pay anything upfront. We pride ourselves on not charging you any other “hidden” fees such as minimum lending fees, early repayment fees, loan administration fees etc.
Our interest rates are sensitive to the level of risk and the term of the loan. Typically, the lowest interest rates are for shorter terms (3-6 months). Because our loans are short-term, interest rates are fixed for the length of the loan.
Our current base rate is 7.95%p.a (3 months). If your loan is considered higher risk, a margin may be applied to this base rate to reflect the level of risk the loan represents.
Our loan terms generally range from 3 to 12 months. In some circumstances, we do lend for longer. If you meet the terms of the loan to our satisfaction, we will usually offer to roll the loan over at the end of the term if you request it.
We offer a range of different loans, as long as they are secured by property. When it comes to loan structure, we’re very flexible.
Types of loan structure:
- Interest only - pay only the interest on your loan, making regular payments on a payment cycle of your choice.
- Part interest only - pay only part of the interest, based on the payment cycle you choose. The balance of the interest is paid at the end of the term of the loan.
- Principal and interest - regular payments of both interest and principal based on the payment cycle you choose.
- One lump sum payment - Pay all interest and principal at the end of the loan.
Interest payment cycles can be monthly, quarterly, 6 monthly or simply one lump sum payment at the expiry of the loan.
The Anti Money Laundering and Countering Financing of Terrorism Act came into effect from 1 July 2013. This Act places an obligation on all New Zealand banks and financial institutions to detect and deter money laundering and terrorism financing. The goal is to help protect New Zealand from financial crime and improve our international reputation as a safe place for doing business.
Under the AML/CFT, all banks and financial institutions will need to collect more information to verify a customer’s identity and source of funds.
Before we can give you a loan, we will need to ask you for these details.
That means, even if you have borrowed from us before, we may need to ask you for extra identity documents and information.
Businesses, trusts or other organisations will need to provide information on the organisation and anyone who acts on its behalf.
The Act affects all banks and financial institutions in New Zealand, so we are required to abide by it.
If you have any questions, please feel free to contact us by email or phone +64 9 520 3660.
ASAP Finance Limited has always developed and maintained strong relationship with various industry bodies.
We are members of the Professional Advisors Association (PAA) which is the premier industry body representing the interests of financial advisors in New Zealand.
ASAP is also a panel lender for some of the top mortgage aggregator groups including:
- Mortgage Express
- Loan Market
- Mike Pero Mortgages
- TNP Home Loans
- Mortgage Link
We are also a member of the Financial Services Complaints Limited (FSCL) who provides an independent and impartial dispute resolution service. FSCL has been approved by the Minister of Consumer Affairs to operate as an external dispute resolution scheme in the financial services industry.
You may find the following websites useful.
Mortgage Brokers
- http://www.loanmarket.co.nz
- http://www.peoplelimited.co.nz
- http://www.firstratemortgages.co.nz
- http://www.globalpacific.co.nz
- http://www.edgemortgages.co.nz
- http://www.gatewayfinance.co.nz
- http://www.mortgagelink.co.nz
- http://www.mortgageexpress.co.nz
- http://www.mikepero.co.nz
- http://www.tnpnz.co.nz
- http://www.paa.co.nz
Interest Rates
Consumer Advise
Property Listings
Contact Us
ASAP Finance Limited
Level 2, 1 Balm Street, Newmarket | PO Box 99 975, Newmarket, Auckland, 1149
Tel: +64 9 520 3660 / 0800 272 756 | Fax:+64 9 520 3664