Borrow from Midlands

Residential Loans

As a non-bank lender, we can assist clients purchasing an investment property or looking to release equity for business purposes or projects. We’ll take the time to understand your unique circumstances and tailor a lending solution that makes good financial sense for all parties.

Midlands Residential Loans Fact Sheet

Security

All loans are secured by a first mortgage

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%

Types of properties

Residential standalone houses, townhouses and multi-unit apartments. We don't do traditional consumer home loans (loans for your own family home) or loans for renovations

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 your money

WHAT WE MAY NEED TO REVIEW AN APPLICATION:



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



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



Documentation to support identification & NZ Residency / Citizenship status



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



Registered Valuation (addressed to FM Custodians Limited)



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



Trust Deed(s) – if applicable



Sale & Purchase Agreement(s) – if applicable



Tenancy Agreement(s) – if applicable

Residential Case Study

Our clients were keen to purchase an earthquake risk commercial building. They felt it represented a good investment once strengthened, however their bank was reluctant to provide the funding required due to the nature of the security. Midlands provided an interest only equity release against a non-related residential property to assist with the purchase and remedial work. Once the work is complete and new tenants are found the commercial building will be a more appealing security for the client’s main bank.

Loan Type – Residential
Purpose – Equity release to purchase commercial investment property
Location – Christchurch
Loan Value – $600,000 plus fees
LVR – 49% LVR
Interest Rate – 9.00%
Servicing – Interest serviced monthly from business income
Term – 12 months
Exit – Bring commercial building up to code, find tenants and refinance to main bank