Who do we lend to?
At Midlands, we invest in a diversified portfolio of New Zealand based residential, commercial or rural property loans, all secured by first ranking mortgages over property and land assets and maintain conservative LVR position.
Borrowers come to Midlands when they want a loan to invest in property, but they don’t quite fit bank lending criteria. This can be for a variety of reasons (not all of them sensible, in our opinion), including being a new business owner or self-employed with no PAYE income, being ‘asset rich but cash poor’, the borrower’s age or having assets but no cash flow over a short period of time.
Simply put, bank lending criteria mean that there are a lot of creditworthy New Zealanders being turned down by banks at present, which is where we come in.
What do you mean you have a conservative LVR position?
What Is LVR?
Loan to Value Ratio (LVR) reflects the amount of your loan (how much you borrow) compared to the value of your property. For example, if you owned a property valued at $1,000,000 and you borrowed $800,000 to purchase it, the LVR on this loan is 80% ($800,000/$1,000,000 = 80%).
Midlands Conservative LVR:
The average weighted LVR on the total Midlands loan portfolio is currently 57.69% (as at 30 June 2026).
This means on average, for every $576,900 we’ve lent out (‘loan’) we have $1,000,000 worth of property assets secured against the loan (‘value’).
The combination of 1st ranking mortgage security AND a conservative approach to LVR’s helps protect the Fund and our investors.
57.69%
What is a 1st ranking mortgage security?
Midlands ONLY take 1st ranking mortgages. A mortgage is a security designed to help protect a lender from financial loss. A 1st ranking mortgage is the most secure form of loan security available when taking security against a property and adds a layer of protection for investors.
Simply put, a 1st Mortgage means Midlands gets paid back first.
A first ranking mortgage gives Midlands the right to take possession of a property and/or land and sell it should a borrower stop making loan repayments or otherwise fail to honour the terms of a loan agreement. This right remains in place until the loan is paid off in full, together with any outstanding interest. For example, if a property was sold for $1,000,000 and Midlands was owed $300,000 on this property. Midlands would receive the $300,000 owed before the owner of the property received any remaining funds.
MIDLANDS’ 6 INVESTING PRINCIPLES
Midlands’ conservative lending principles help protect our investors:
At Midlands, we invest in a diversified portfolio of New Zealand–based residential, commercial, and rural property loans — all secured by first-ranking mortgages over property and land assets. Borrowers come to us when they’re looking to invest in property but don’t quite meet traditional bank lending criteria. This can happen for a variety of reasons (not all of them logical, in our view), including being a new business owner or self-employed without PAYE income, being ‘asset rich but cash poor’, age considerations, or having strong assets but temporarily reduced cash flow.
Because bank criteria are so tight, many creditworthy New Zealanders are currently being turned down — and that’s where we come in. Every loan proposal we receive undergoes a rigorous dual-review process, first by the Midlands Lending team and then by the Midlands Credit team. All loans are secured by first-ranking mortgages, with repayment typically achieved through either the sale of an asset or refinancing to a main bank.
This disciplined approach means fewer than 10% of the proposals we assess are approved. It ensures we maintain a high-quality, diversified portfolio of loans designed to withstand market volatility, protect investor capital, and deliver consistent, reliable returns.
1
Loans are always secured by 1st Mortgages over NZ property (see above).
2
We have a conservative LVR approach (scroll up for more information).
3
Our loan portfolio is diversified geographically across New Zealand.
4
Our loan portfolio is diversified by asset type, with a mix of residential, commercial & rural property assets.
5
Our borrowers must have a clear exit e.g. to sell the property or refinance back to a bank.
6
We don’t lend all our investors’ money out. We hold a minimum of 5% in cash.
