Investment rates and payments
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Disclaimer
* This calculator gives an annual figure result. SCP calculates interest daily and applies monthly therefore some months may fluctuate with 28, 30 or 31 days in the month.
This calculator is intended as a guide for illustrative purposes only and is not intended to provide financial advice. It assumes that the amounts entered are invested for a 12-month period and the returns are based on the interest rate selected.
The calculation results do not consider taxes that may be applicable to you (including withholding tax), early repayment of your investment (when the interest would cease) or partial repayments (which reduces your principle invested).
Please note that interest rates offered on our platform are subject to change and our minimum investment amount is currently $10,000 (subject to availability).
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Disclaimer
* This calculator gives an annual figure result. SCP calculates interest daily and applies monthly therefore some months may fluctuate with 28, 30 or 31 days in the month. This calculator is intended as a guide for illustrative purposes only and is not intended to provide financial advice. It assumes that the amounts entered are invested for a 12-month period and the returns are based on the interest rate selected. The calculation results do not consider taxes that may be applicable to you (including withholding tax), early repayment of your investment (when the interest would cease) or partial repayments (which reduces your principle invested). Please note that interest rates offered on our platform are subject to change and our minimum investment amount is currently $10,000 (subject to availability)
To talk to one of our team please call 09 535 2239 or email [email protected]or you can find more information about P2P investing here. We recommend seeking financial advice about your situation and goals before investing into any financial product.
To talk to one of our team please call 09 535 2239 or email [email protected] or you can find more information about P2P investing here. We recommend seeking financial advice about your situation and goals before investing into any financial product.
How interest payments work: Interest paid monthly, no fees deducted.
As an investor you will receive an agreed interest rate, paid monthly* (depending on the loan agreement). There are no fees deducted from this, neither are there any setup costs when you begin investing with us. It’s that simple!
Your pre-determined interest rate already has allowance for a small margin retained by us, which is disclosed with the offering. That means the full amount of interest rate is yours with no further deductions, other than tax.
All our loans are interest-only (not principal and interest, like a regular home loan). You have the option of different investment offerings, depending on what is available at the time. Our lending agreements with borrowers can include:
- Fully serviced payments (most common) – paid monthly
Borrowers pay their loan interest in a regular basis (weekly/fortnightly/monthly). In turn we pay you, our investors, monthly, on the next business day after the monthly anniversary date of the loan advance. - Compounding interest/capitalised interest – paid at end of term*
Borrowers don’t make interest payments during the term of the loan. Instead, all interest is collected when the loan is repaid. In the interim, interest capitalises (adds) to the loan each month. For investors, we do the same so your investment compounds and your total funds (principal and added interest) are paid when the loan repays. The total loan amount includes all the interest that would be payable for the term of the loan. - Retained Interest
Funds to service the interest payments for this loan have been added to the loan amount and then retained by the SCP in the trust account. The loan interest payments due are paid monthly from the trust account and all investor interest payments will be made from these funds on their due date.
Speak to one of our investment team about our peer-to-peer investments
Frequently asked questions
At SCP you choose to invest your money into specific loans against specific properties. This means your investment period is linked to the life of the chosen loan, differing from a term deposit length which is set by monthly periods.
All loans have an agreed repayment strategy, and this provides a guideline for the investment period. However, all borrowers have the right, through law, to repay their loan at any time. This means it’s possible the loan you have invested in may repay early.
The borrower may also need a little extra time to complete their project or obtain a sale to repay the loan. In these instances the loan is re-assessed and renewed enabling the investment continues.
All income in New Zealand is subject to tax, with the rate determined by your specific circumstances. We act on your instructions (with respect to your tax rate).
We will deduct withholding tax from your interest payments and pay this tax to Inland Revenue each month. PIR tax rates are unable to be applied to interest earned with SCP. You will be provided a Tax Certificate each year (as of 31 March) which summarises the total interest paid, and tax deducted. In some circumstances, you can obtain an exemption certificate from Inland Revenue in which case, if you provide us a copy, we will not deduct tax.
The tax entity that manages all interest payments and principle funds is our trust company; Loan Investment Trustees Limited and this is the name that will appear on your tax statement and My IR portal
On the rare occasion a borrower misses an interest payment, Southern Cross Partners has a robust process in place to manage the situation. Borrowers who fail to meet their obligations incur additional default interest on top of their regular repayments. However, this does not automatically pass through to investors.
Southern Cross Partners, may elect to continue to pay your monthly interest even if the borrower does not. If not you are entitled to default interest, you will receive 50% of the actual default interest collected for the period your investment is in default. In some cases, we may need to negotiate these charges to achieve the best outcome, and this is done at our sole discretion.
We are conservative lenders, and loan defaults with Southern Cross Partners have historically been low. In the very rare instances that loan defaults impact our investors we will always communicate directly with those investors about the best course of action we are taking.
Why invest with us?
With nearly three decades of proven experience and credibility, we offer investments backed by tangible property security. Enjoy a flexible, transparent investment option designed to deliver steady, enhanced financial returns.