12 November 2021

Vincent Capital Vincent Solutions

The new Builder Loans product from Vincent Securities provides a fast, affordable track to housing development finance.

Housing development in Auckland is at a unique crossroads. With urgent need for new homes, there is also strong support from the Unitary Plan for small to medium-size construction projects. As a result, we are seeing huge demand (and a current gap in the market) for a funding product that enables medium-scale developers to move to market with speed, agility and profitability. That is why we have created our new Builder Loans product.

Best of both worlds

The new Builder Loans facility from Vincent Securities Limited and Bank of China (New Zealand) Limited (BOCNZ) combines the affordability of a bank construction loan with the agility of our client-focused process.

Banks typically offer the lowest interest rates, but red tape often slows them down. They usually require reports from quantity surveyors and other professionals, along with substantial presales. This need for presales means that, with any rise in development costs, your profit margin can be pinched. In addition, any sole hitch, even a minor one, can lead a bank to decline an application.

Our Builder Loans product, by contrast, offer the best of both worlds:

  • Our interest rate (currently at 6.5% p.a.), while higher than a bank’s, is low enough to compete robustly with our competitors.
  • The beneficial financial outcomes of our speed and agility will often outweigh any interest rate percentage differential.
  • Our fees are competitive: we charge a flat-rate establishment fee of 2.49% for a 12-month term, and no line fees.
  • We look at the broader picture to assess client risk profile – which means that we can tailor our product to your situation, making it far less likely we’ll decline on a technicality.

Simple, fast and flexible

We don’t require professional QS reports. Nor do you need presales. (This has the added benefit of helping to protect your profit margin, should development costs rise.)

The simplicity of our Builder Loans facility makes it a transparent process from the outset. With pre-agreed drawdown stages and amounts, we can help you move very fast: on average, you can access funds the day after we receive your progress drawdown request.

We also work with owner–builders and self-managed builds. In those situations we do not require a fixed-price contract. What we do ask for is a detailed project budget.

We do require clients to have a minimum of two years’ relevant development experience and to be able to demonstrate previous project success. (We take the long view: we like building strong relationships.)

Our other key criteria are:

  • Your project is based in Auckland and for sale when completed.
  • Maximum development units: 10 (single houses or terraced houses).
  • Maximum amount borrowed: NZ$5m.
  • Maximum LVR: 75%.
  • You must be GST registered.

Introducing Vincent Securities and Vincent Capital

Vincent Securities is a sister company to Vincent Capital, which has been one of the leading property financiers in Auckland since it was established in 2017. Our partner in the Builder Loans product, BOCNZ, provides commercial and corporate banking, global trade services, and financial market services to support business development for both New Zealand and Chinese enterprises. This solid financial backing for your construction loan puts the financing of your project in safe hands.

In addition, Vincent Capital and Vincent Securities both respect the fiduciary relations between brokers and borrowers.

For a product overview and application checklist, visit our Builder Loans page.

To find out more, contact Henry Chen at henry@vincentcapital.co.nz or call 021 273 8808.

Hi Henry,

Our customers have always been satisfied with your work and profession. I think your great experience in the construction industry has added a lot of value for them. They cannot be happier in dealing with Vincent Capital for their development projects. As a financial advisor, we just love the way you do things: fast, efficient and knowledgeable.

— Mortgage Advisor

Disclaimer
The article and the information contained herein is not intended to be a source of advice or credit analysis with respect to any material presented, and the information and/or documents contained in this article and linked website do not constitute investment advice. The Information is provided ‘as is’ and subject to change without notice. Vincent Securities is under no obligation if it becomes aware of any change or inaccuracy.
Fees & rates are subject to change. Terms and conditions apply.
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