First mortgage finance is a loan secured against property, and which has priority over other liens or claims on a property.
First mortgage finance is a loan secured against property, and which has priority over other liens or claims on a property.
Second mortgage finance is a loan secured against equity in your home, where the money is used to fund other projects.
ASAP Finance does not offer second mortgage finance unless it is being used to support an existing first mortgage held by ASAP. However, we are extremely flexible when it comes to loan structuring.
ASAP Finance offers a range of different loans including; investor loans, development loans, and bridging loans – so long as they are secured by property on a first mortgage basis, ASAP Finance can provide a funding solution for you.
The amount you can borrow depends on your security, earnings, and the value of the asset. ASAP lends up to 75% of the value, depending on location and security.
ASAP Finance’s minimum loan is $300,000 and we can lend up to $50 million on a single loan.
The repayment type of your loan will be specific to your needs. ASAP offers the below repayment types:
ASAP Finance provides interest-only loans under almost all instances subject to the client’s ability to service the debt. However, this does not include construction and development loans where our preference is to capitalise interest – this is because it forms part of the cost-to-complete facility. There are some exceptions to this – ASAP Finance may allow part-interest payments for experienced developers who are supported by strong cashflow.
Yes. You can repay 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 make an early repayment fee.
Although ASAP Finance charges 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. ASAP Finance is proud of not charging “hidden” fees such as minimum lending fees, early repayment fees and loan administration fees etc.
ASAP Finance interest rates are sensitive to the level of risk and the term of the loan. Typically, the lowest interest rates are available for shorter terms (3-6 months). If your loan is considered higher risk, a margin may be applied to a base rate to reflect the level of risk the loan represents.
Loan terms range from a minimum of 3 months, to 12 months. In some instances, where a 12-month term is not sufficient to complete a project, ASAP Finance will consider extending the term of the loan to enable the project to be taken to completion.
A Registered Valuation (RV) is a detailed report done by a professional Valuer that estimates the market value for a property. For residential property, this is most commonly done by the “sales comparison approach”; under this approach one property is compared with other recently sold properties in the area with similar characteristics. Registered Valuations can cost anywhere from $2,000 to $10,000 depending on the type of property or project.
At ASAP Finance we generally do not require Registered Valuations. Much of the work a valuer does is completed as part of ASAP’s internal due diligence process.
Yes. At ASAP Finance we believe that everyone deserves the chance to remedy their financial situation and be given the opportunity to get back on their feet financially. While we require credit checks to be done, approval of a loan application is not just based on credit scores. Each application is assessed independently based on its own merits.
Serviceability refers to a borrower’s ability to meet interest repayments, based upon the loan amount, the borrower’s income, expenses and other commitments. The extent to which serviceability impacts a lending decision depends on the type of loan you are seeking and the repayment type.
Interest-only loans require monthly repayments, hence a borrower’s ability to make these repayments (serviceability) forms an important part of the credit decision.
For capitalised interest loans there are no monthly repayments. Instead, all interest owed is added to the loan balance and repaid at the end of the term. In such circumstances, greater emphasis is placed on a client’s proposed ‘exit strategy’ and ability to perform (as opposed to serviceability). Almost all construction loans are structured as capitalised interest loans.
Irrespective of your situation, ASAP Finance will tailor a solution specific to your needs with interest-only, part interest-only, and capitalised interest loans available.
The Credit Contracts and Consumer Finance Act (CCCFA) is legislation that regulates the consumer finance sector. The Act ensures that borrowers can make informed decisions about their finances by providing rules and regulations that lenders must abide by – including disclosure requirements.
CCCFA applies to consumer lending only. Under CCCFA, a “consumer loan” is one where the consumer uses or intends to use the credit, wholly or predominantly for personal, domestic or household purposes. For real estate transactions, a second relevant test is whether or not the security is held in the name of an individual and is their primary place of residence.
A contract is not a consumer credit contract when the credit is for commercial or investment purposes, or where the secured property is owned by a company or a family trust.
ASAP Finance does not accept loan applications for consumer loans. That being said, the standards and principles set out in the Act are something we take seriously. With every transaction, ASAP Finance exercises the care, diligence, and skill of a responsible lender.
ASAP Finance does not offer pre-approvals. Development funding transactions involve significant due diligence, as such, we request that clients have a property under contract (subject to due diligence), or already own the property prior to submitting a loan application.
Yes. ASAP can refinance everything from standard investor loans to complex development loans, even if they are mid-way through completion. ASAP Finance often refinances development loans from other companies who do not possess the necessary skills or expertise to fund the project to completion.
You may find the following websites useful.
Property Listings
News
ASAP Finance has always developed and maintained strong relationships with various industry bodies. We are members of Financial Advice New Zealand which is the premier industry body representing the interests of financial advisors in New Zealand. ASAP Finance is also a panel lender for some of the top mortgage aggregator groups including:
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 ASAP Finance 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, and 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 is a member of the New Zealand Financial Services Complaints (FSCL) which provides an independent and impartial dispute resolution service. FSCL are an independent, not-for-profit, external dispute resolution scheme approved by the Minister of Consumer Affairs.
If something has gone wrong, we want to know.
Please send an email to info@asapfinance.co.nz and tell us what has happened and how we can resolve matters. If you have any documents or correspondence that will help us understand your complaint, please attach them to the email.
When we receive your complaint, we will:
If we cannot agree on how to resolve the complaint, you can contact Financial Services Complaints Limited (FSCL). FSCL’s service does not cost you anything and they will help resolve the complaint.