Borrow from Midlands

Bridging loans

When it comes to property, we know things don’t always align perfectly. Thankfully, we can provide shorter-term loans to bridge the gap between the purchase of a new property and the sale of an existing one. We offer sensible bridging finance over residential and commercial properties so if you’ve got plans in the making, give us a call.

Midlands Bridging Finance Fact Sheet

Security

All loans are secured by a first mortgage. We would look to take security over both the property being purchased, and the property being sold. Capitalised interest may be considered on case-by-case basis dependent on circumstances and clarity of exit strategy

Interest Type

Floating interest rates only

Minimum Loan Size

Our minimum loan size is $400,000

Term

We offer terms of up to 2 years, the average term being 12-18 months

Interest Rates

Our interest rates currently start from 9.50% per annum and are adjusted for risk and subect to change. The rate charged will depend on your financial circumstances taking into account:
• How much you want to borrow
• The term of your loan
• Your other financial commitments
• Your credit history
• Loan to Value Ratio of security offered
• Strength of exit

LVR Guidelines

• Residential Land and Buildings in fee simple: up to 75%
• Residential Vacant land in fee simple: up to 50%
• Commercial Land and Buildings in fee simple: up to 66.7%
• Commercial Vacant Land in fee simple: up to 50%

Types of properties

We can offer bridging finance over any property type

How long does it take?

We can approve loans in under 24 hours and provide funds within 48 hours of all conditions precedent being met, giving you fast access to the funds you need

WHAT WE MAY NEED TO REVIEW AN APPLICATION:

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Fully completed, signed & dated application (including signed Applicant’s & Guarantor’s Agreements)

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Commentary regarding the purpose of the loan, term required, & intended exit strategy

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Documentation to support identification & NZ Residency / Citizenship status

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Verification of income (recent payslips / Employment Agreement / IR3 / signed financials or similar)

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Registered Valuation (addressed to FM Custodians Limited).

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Evidence to support the origin of your contribution to the proposed deal (source of deposit funds etc)

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Trust Deed(s) – if applicable

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Sale & Purchase Agreement(s) – if applicable

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Tenancy Agreement(s) – if applicable

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Deed(s) of Lease (for tenanted commercial properties)

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NBS Report confirming seismic rating of commercial properties

Bridging Case Study

Our client, a property developer, had completed the construction of three properties, funded by a specialised development funder. Our client wanted to sell the properties one at a time so as not to ‘flood’ the market. Midlands provided a short-term interest only refinance of the development loan at a lower rate while the properties were marketed and sold.

Loan Type – Residential
Purpose – Refinance development funder
Location – Queenstown
Loan Amount – $2.9m plus interest and fees
Fees – 1.50%, added to loan
LVR – 67% (exc GST)
Interest Rate – 10.95% P.A.
Servicing – Capitalised Interest
Term – 6 months
Exit – Security properties to be sold