Frequently Asked Questions

What is a 'secondary market' listing on the portal?

Occasionally we have Secondary Market opportunities on the Investor Portal when an investor requires access to their funds earlier than expected.
There are many reasons why investors may need their funds before the loan repays and we offer a Secondary Market service for them to re-sell their loans to another investor.

The most common reasons are:

  • To downsize and purchase a retirement unit
  • To help their family into a property or assist with business funds
  • To inject capital into their own business
  • To purchase a new vehicle
  • To complete property renovations
  • To purchase an investment property
  • To pay for a holiday
  • To cover unexpected expenses

Loans cannot be re-sold to other investors that:

  • Have payment arrears over 30 days
  • Have an active hardship application
  • Are subject to an active Property Law Act notice
  • Have a scheduled mortgagee sale date
  • Has expired

We want investors to be confident that there is nothing wrong with these loans and they are the same quality loans as any of the new loans on offer. That’s why all Secondary Market loans are reviewed before being published on the Portal’s Investment Opportunities page to ensure they still fit our strict criteria.

If you have any questions about any of the Secondary Market loans listed on the Investor Portal, please do not hesitate to get in touch.

What is the minimum investment?

Our minimum investment can be as low as $10,000.00 (ten thousand dollars) per individual loan but subject to availability . Each loan will have its own set minimum investment which can be dependent on the total loan amount and the number of preferred investors in a loan. For example a loan of $1m or more may have a minimum set of $50,000 allowing 20 investors to invest.

What does LVR mean?

LVR or Loan to Value Ratio is, in percentages, the loan amount against the property value IE a $250,000 loan would have an LVR of 50% if the value of the property was $500,000

How safe is my investment?

All investments carry risk however SCP peer to peer investments are supported by a first mortgage registered against a piece of Real Estate. Better yet, you are able to select the location and the Loan To Value ratio that best suits your investment risk profile and investment strategy.

Can you help me choose my investment?

This decision is yours to make. We can help explain any procedural matters that are unclear to you, but we cannot provide you with any advice or guidance in respect to individual loans or to your wider investment strategy. If this is required, we would urge you to speak to a suitably qualified Authorised Financial Advisor.

What interest rate do I receive on my On Call account?

Each investor is allocated an On-Call account where new funds and repaying funds are transferred in and out of.
Any funds that are held in this account earn interest calculated daily and paid out to your nominated bank account on the first working day of the month following.  (interest is unable to be held in the On-Call account)

The interest rate will be based on a percentage of the current OCR and will fluctuate accordingly.
If the OCR rate changes, we will reflect that change in our interest rate from the first day of the following month.

The current interest rate for the on-call account is: 3.50% p.a.

Resident Withholding Tax (RWT) is deducted from the gross interest earned and calculated at your current nominated tax rate.

What about Tax?

We are legally obliged to deduct Resident Witholding Tax (RWT) from any and all interest earned which we send to the Inland Revenue Department (IRD) on a monthly basis on your behalf.

It is up to yo to supply us with a valid IRD number for each party or entity investing along with a tax rate. You can check your tax rate on the IRD website.

What happens if the borrower does not pay their interest?

Firstly, Southern Cross Partners will deal directly with the borrower in an effort to sort out the problem. We have a lot of experience with this, and a range of strategies that we employ. In respect to your interest payments, these are paid from the installments that the borrower pays to us. If they do not pay, Southern Cross Partners may elect to make up any shortfall. If we do this, your payments will continue, unaltered, and we will collect any shortfall payments from the borrower. If we elect to not pay you the shortfall, your interest payments will stop and you will be entitled to a portion of whatever default interest we collect on your portion of the loan, for the period that your investment payments are in default.

What happens if I want my money back before maturity?

Your investment is for the life of the loan and locked in until the loan repays. However, we do operate a Secondary Market service where, in some circumstances, you can re-sell your loan to other investors. Click here for the rules for this service. To know more about the circumstances when investors mighty use this service you can read our blog here

Are properties insured and are rates paid?

As part of the loan drawdown process, we will receive evidence that properties are insured and that our interest is noted on those policies. Despite this, it is possible that borrowers may let policies lapse or even cancel them, and whilst there is an expectation that Insurance Companies will notify us of that, this does not always occur. Insurance is always checked if any event occurs with a borrower, and it is a condition of their loan that the property is continuously covered. Occasionally we will pay insurance companies to keep properties insured, with costs for this added to the loan.

We receive confirmation that rates are paid to date when we provide a loan, but this does not mean that the borrower will continue to meet their rate payments. The Local Government Act gives the councils authority to claim unpaid rates from Mortgagees, so at times we receive these rate demands.

Initially we will contact the borrower to arrange payment, but at times we will be obliged to make these payments, with the cost added to the loan. Where Southern Cross Partners has paid these rates, then Southern Cross Partners will be refunded these amounts first where the loan is repaid including where the mortgaged property is sold at a mortgagee sale.

What is Peer to Peer (P2P)?

P2P is a mechanism whereby an intermediary (us) puts an Investor (you) together with a borrower. The intermediary (us) manages both sides of the relationship.

The Southern Cross Financial Group has been providing mortgage lending since 1997 and Contributory Mortgage Investing since 2009. P2P is simply the modern term for what we have been doing for years. Where we differ from most other P2P providers* is that:

  1. We have proven experience and track record
  2. All of our loans (your investments) are secured by way of a 1st registered mortgage over Real Estate
  3. We use our own money to fund the loans initially, so this ensures that we have a robust credit system and are happy with each and every loan we make and then offer to our investors

*Some other P2P providers may have one or more of the above attributes.

Are you regulated?

P2P is a mechanism whereby an intermediary (us) puts an Investor (you) together with a borrower. The intermediary (us) manages both sides of the relationship.

The Southern Cross Financial Group has been providing mortgage lending since 1997 and Contributory Mortgage Investing since 2009. P2P is simply the modern term for what we have been doing for years. Where we differ from most other P2P providers* is that:

  1. We have proven experience and track record
  2. All of our loans (your investments) are secured by way of a 1st registered mortgage over Real Estate
  3. We use our own money to fund the loans initially, so this ensures that we have a robust credit system and are happy with each and every loan we make and then offer to our investors

*Some other P2P providers may have one or more of the above attributes.

Who holds the P2P License?

The license is held by Southern Cross Partners Limited. (This company was called SCFL Management Limited, and was our Contributory Mortgage broker, with the name change taking effect from the 1st of December 2016).

What happens if Southern Cross Partners fails?

In the unlikely event of a failure of our business, we have a contractual arrangement with another finance provider to take over the management of the business. There may be some minor interruption to services while the transition occurs, but things would quickly be back on track, with no adverse effect to our investors. Of course the mortgage which supports your investment, as well as your interest payments, are all held in Trust by Loan Investment Trustees Limited. They do not form part of our business, and those funds / mortgage securities are not immersed in our business in any way. They are held completely separately, so any failure of Southern Cross Partners does not involve your Investment or your Interest Payments.

Can I have my name on the property title?

No. The first mortgage is registered on the title of the property by Loan Investment Trustees Limited, our trustee company. This is held in trust on behalf of the investors.

Why did I receive a partial repayment?

Borrowers may repay a portion of their loan within the loan term at anytime. 

There are legitimate reason borrowers may repay a portion of their loan during the loan term such as they have sold one or more of the security properties, a reduction in the loan amount is required to qualify for a renewal or they have obtained funds from other sources sufficient to significantly reduce their loan

When funds arrive they are distributed to each investor by the percentage of the overall loan they hold, and then deposited into the investors' On Call accounts. Email advice confirming the amount recieved is sent to all investors as soon as practical.

A reminder all funds received into our trust account are processed the next business day. This includes funds received on Fridays processed on Mondays.
Legally we are required to accept borrowers' funds to apply to their loan at anytime with no notice required. This includes full and partial repayments.

 

What happens to my Investments in the event of my death?

To know how your investments will be managed in the event of your passing we have prepared an information sheet to guide you and your family through the next steps.

Please click here to view the information sheet. You can also contact our friendly investment team [email protected]

How can I view my investment portfolio?

You can access all details for your investment portfolio on the SCP investor portal. This includes all transactions and investment details of current and past investments.

In addition 6 monthly transaction statements are made available to all investors in April & October every year and appear on the Statements section of the investor portal. Resident Withholding Tax (RWT) certificates are also available however all details can be also accessed on the MyIR part of the Inland Revenue Department website and we are shown as Loan Investment Trustees Limited.

What is the minimum investment?

What is the minimum investment?

Our minimum investment can be as low as $10,000.00 (ten thousand dollars) per individual loan but subject to availability . Each loan will have its own set minimum investment which can be dependent on the total loan amount and the number of preferred investors in a loan. For example a loan of $1m or more may have a minimum set of $50,000 allowing 20 investors to invest.

Our minimum investment can be as low as $10,000.00 (ten thousand dollars) per individual loan but subject to availability . Each loan will have its own set minimum investment which can be dependent on the total loan amount and the number of preferred investors in a loan. For example a loan of $1m or more may have a minimum set of $50,000 allowing 20 investors to invest.

What does LVR mean?

LVR or Loan to Value Ratio is, in percentages, the loan amount against the property value IE a $250,000 loan would have an LVR of 50% if the value of the property was $500,000

How safe is my investment?

All investments carry risk however SCP peer to peer investments are supported by a first mortgage registered against a piece of Real Estate. Better yet, you are able to select the location and the Loan To Value ratio that best suits your investment risk profile and investment strategy.

Can you help me choose my investment?

This decision is yours to make. We can help explain any procedural matters that are unclear to you, but we cannot provide you with any advice or guidance in respect to individual loans or to your wider investment strategy. If this is required, we would urge you to speak to a suitably qualified Authorised Financial Advisor.

What interest rate do I receive on my On Call account?

Each investor is allocated an On-Call account where new funds and repaying funds are transferred in and out of.
Any funds that are held in this account earn interest calculated daily and paid out to your nominated bank account on the first working day of the month following.  (interest is unable to be held in the on-Call account)

The interest rate will be based on a percentage of the current OCR and will fluctuate accordingly.
If the OCR rate changes, we will reflect that change in our interest rate from the first day of the following month.

The current interest rate is: 3.50% p.a.

Resident Withholding Tax (RWT) is deducted from the gross interest earned and calculated at your current nominated tax rate.

What about Tax?

We are legally obliged to deduct Resident Witholding Tax (RWT) from any and all interest earned which we send to the Inland Revenue Department (IRD) on a monthly basis on your behalf.

It is up to yo to supply us with a valid IRD number for each party or entity investing along with a tax rate. You can check your tax rate on the IRD website.

What happens if the borrower does not pay their interest?

Firstly, Southern Cross Partners will deal directly with the borrower in an effort to sort out the problem. We have a lot of experience with this, and a range of strategies that we employ. In respect to your interest payments, these are paid from the installments that the borrower pays to us. If they do not pay, Southern Cross Partners may elect to make up any shortfall. If we do this, your payments will continue, unaltered, and we will collect any shortfall payments from the borrower. If we elect to not pay you the shortfall, your interest payments will stop and you will be entitled to a portion of whatever default interest we collect on your portion of the loan, for the period that your investment payments are in default.

What happens if I want my money back before maturity?

Your investment is for the life of the loan and locked in until the loan repays. However, we do operate a Secondary Market service where, in some circumstances, you can re-sell your loan to other investors. Click here for the rules for this service. To know more about the circumstances when investors mighty use this service you can read our blog here

Are properties insured and are rates paid?

As part of the loan drawdown process, we will receive evidence that properties are insured and that our interest is noted on those policies. Despite this, it is possible that borrowers may let policies lapse or even cancel them, and whilst there is an expectation that Insurance Companies will notify us of that, this does not always occur. Insurance is always checked if any event occurs with a borrower, and it is a condition of their loan that the property is continuously covered. Occasionally we will pay insurance companies to keep properties insured, with costs for this added to the loan.

We receive confirmation that rates are paid to date when we provide a loan, but this does not mean that the borrower will continue to meet their rate payments. The Local Government Act gives the councils authority to claim unpaid rates from Mortgagees, so at times we receive these rate demands.

Initially we will contact the borrower to arrange payment, but at times we will be obliged to make these payments, with the cost added to the loan. Where Southern Cross Partners has paid these rates, then Southern Cross Partners will be refunded these amounts first where the loan is repaid including where the mortgaged property is sold at a mortgagee sale.

What is Peer to Peer (P2P)?

P2P is a mechanism whereby an intermediary (us) puts an Investor (you) together with a borrower. The intermediary (us) manages both sides of the relationship.

The Southern Cross Financial Group has been providing mortgage lending since 1997 and Contributory Mortgage Investing since 2009. P2P is simply the modern term for what we have been doing for years. Where we differ from most other P2P providers* is that:

  1. We have proven experience and track record
  2. All of our loans (your investments) are secured by way of a 1st registered mortgage over Real Estate
  3. We use our own money to fund the loans initially, so this ensures that we have a robust credit system and are happy with each and every loan we make and then offer to our investors

*Some other P2P providers may have one or more of the above attributes.

Are you regulated?

P2P is a mechanism whereby an intermediary (us) puts an Investor (you) together with a borrower. The intermediary (us) manages both sides of the relationship.

The Southern Cross Financial Group has been providing mortgage lending since 1997 and Contributory Mortgage Investing since 2009. P2P is simply the modern term for what we have been doing for years. Where we differ from most other P2P providers* is that:

  1. We have proven experience and track record
  2. All of our loans (your investments) are secured by way of a 1st registered mortgage over Real Estate
  3. We use our own money to fund the loans initially, so this ensures that we have a robust credit system and are happy with each and every loan we make and then offer to our investors

*Some other P2P providers may have one or more of the above attributes.

Who holds the P2P License?

The license is held by Southern Cross Partners Limited. (This company was called SCFL Management Limited, and was our Contributory Mortgage broker, with the name change taking effect from the 1st of December 2016).

What happens if Southern Cross Partners fails?

In the unlikely event of a failure of our business, we have a contractual arrangement with another finance provider to take over the management of the business. There may be some minor interruption to services while the transition occurs, but things would quickly be back on track, with no adverse effect to our investors. Of course the mortgage which supports your investment, as well as your interest payments, are all held in Trust by Loan Investment Trustees Limited. They do not form part of our business, and those funds / mortgage securities are not immersed in our business in any way. They are held completely separately, so any failure of Southern Cross Partners does not involve your Investment or your Interest Payments.

Can I have my name on the property title?

No. The first mortgage is registered on the title of the property by Loan Investment Trustees Limited, our trustee company. This is held in trust on behalf of the investors.

Why did I receive a partial repayment?

Borrowers may repay a portion of their loan within the loan term at anytime. 

There are legitimate reason borrowers may repay a portion of their loan during the loan term such as they have sold one or more of the security properties, a reduction in the loan amount is required to qualify for a renewal or they have obtained funds from other sources sufficient to significantly reduce their loan

When funds arrive they are distributed to each investor by the percentage of the overall loan they hold, and then deposited into the investors' On Call accounts. Email advice confirming the amount recieved is sent to all investors as soon as practical.

A reminder all funds received into our trust account are processed the next business day. This includes funds received on Fridays processed on Mondays.
Legally we are required to accept borrowers' funds to apply to their loan at anytime with no notice required. This includes full and partial repayments.

 

What happens to my Investments in the event of my death?

To know how your investments will be managed in the event of your passing we have prepared an information sheet to guide you and your family through the next steps.

Please click here to view the information sheet. You can also contact our friendly investment team [email protected]

How can I view my investment portfolio?

You can access all details for your investment portfolio on the SCP investor portal. This includes all transactions and investment details of current and past investments.

In addition 6 monthly transaction statements are made available to all investors in April & October every year and appear on the Statements section of the investor portal. Resident Withholding Tax (RWT) certificates are also available however all details can be also accessed on the MyIR part of the Inland Revenue Department website and we are shown as Loan Investment Trustees Limited.

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