FMT ticks over $500m in investments
While banks clamp down on lending and restrictions tighten for investors, one non-bank lender has more money to offer than ever.
Thursday, 4 May 2017
Property finance and investment provider First Mortgage Trust has seen its investment book climb to more than $500 million.
It passed the milestone on Monday of this week.
That is up from just under $350m in the year ended March 31, 2016.
Financial controller Roger Ford said the growth was due to the rate of return it could offers its investors.
He said it was typically 2% higher than what was available in six-month term deposits from the banks, which is the rate FMT benchmarks against.
The rate of growth should continue until the official cash rate started to climb again, he said.
But he said the big increase in funds was not what had been expected. “A couple of years ago there was talk of interest rates going up then it flicked to the OCR reducing. I don’t think anyone saw such a long period where interest rates were so low.”
There was also increasing demand for borrowing, he said, as the banks tightened their criteria for property finance and there was less money available from non-bank lenders.
Alan Hitchcock, FMT’s loans manager, said the firm was willing to look at a range of residential deals, and was most concerned about the quality of the property being purchased.
It would favour anything that was bought in the top half of the North Island, from Napier across to New Plymouth north. “That’s the golden triangle, the preferable area,” he said.
It could lend up to about 65% LVR and would offer rates on a case-by-case basis around 7.95%. Deals were normally done for one to three years, interest-only.
It also offers an equity release product.
Comments from our readers
No comments yet
Sign In to add your comment
Weekly Updates including news and commentary
Today's Best Bank Rates
Today's Top 5 Deposit Rates
Find a Rate
Cash PIE Rates
21 June 2017
6 June 2017
4 May 2017
10 April 2017
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2018. Tarawera Publishing Ltd. All Rights Reserved.