Category: Blog

Investors may consider interest-only repayments when buying, refinancing or refixing an investment property. The immediate effect is lower scheduled repayments because the borrower pays interest without reducing principal. That can improve holding-period cash flow, but it also leaves the debt unchanged and generally increases total interest over the life of the loan. The relevant question […]

A feasibility prepared in a stronger market may now be working with softer end values, longer sell-down periods and a higher cost of debt. Each movement can look manageable on its own. Together they can materially reduce development margin, increase peak debt and change the funding required to reach repayment. The useful question for a […]

Commercial property lending is assessed across the property, its income or intended use, the borrower’s financial position, available equity and the proposed exit. For a tenanted asset, the tenant and lease are central because they support the property’s income. For an owner-occupied or vacant property, lenders place more weight on the borrower, security, business position […]

Bridging finance can be an effective tool for property investors and developers who need to move quickly or bridge a timing gap between transactions. Used well, it solves a defined short-term funding need. Used poorly, it can create repayment pressure, increase costs and reduce the borrower’s equity buffer. Most problems with bridging finance arise from […]

Bridging finance has several moving parts. Open and closed structures, capitalised interest, security, equity, exit strategy and loan term all affect whether a bridge is fundable and whether it solves the timing gap it is intended to address. At ASAP Finance, we have covered many of these topics in detail across our bridging finance blog […]

Residential property remains a common investment choice in New Zealand because it combines a tangible asset with the potential for rental income, capital growth and active value creation. Those benefits are not guaranteed. Returns depend on the purchase price, funding structure, operating costs, tenant demand, property condition, tax treatment and the point in the market […]

Funding is one of the most important parts of any property development project. A strong site, capable builder and well-priced end product will not get far unless the funding structure is clear, realistic and aligned with the development programme. For many developers, the question is not simply how to fund a development project. The better […]

If you have received a quote for development or construction finance, you may have seen a line fee listed alongside the interest rate. It is easy to overlook, but the charging basis and quoted period can materially affect the total cost of a facility. Understanding how a line fee works makes it easier to compare […]

When a lender or broker talks about how a loan is structured, they mean the terms and mechanics that determine how the facility works in practice. This includes the facility limit, purpose, security, drawdown conditions, interest and fees, repayment profile, leverage tests, covenants and exit. For property developers, structure can matter as much as the […]

Equity in property can support short-term business funding where a standard bank facility does not fit the timing or structure required. The security may be an investment property, owner-occupied commercial premises or residential property. The amount available depends on the property, existing debt, loan purpose and repayment strategy. Non-bank bridging finance can be useful where […]