A GUIDE FOR
INVESTORS
CONTENTS
03/
Points of contact within
Southern Cross Partners
04/
How to access the
Investment Portal on the
website
05/
Website listings explained
06/
Loan Management and
Communication
07/
Statements & Tax
Certificates
08/
Repayments, Extensions &
Secondary Market
09/
How do I get my money
back?
10/
Frequently Asked Questions
WELCOME
Thank you for choosing Southern
Cross Partners, we are delighted
to have you on board partnering
with us.
This document is a handy guide
to get you started, from tips and
hints on the website to how we
communicate the management of
the loan to you.
Here at Southern Cross Partners
we pride ourselves on having real
people at the end of the telephone
to answer any query you may
POINTS OF
CONTACT
Relationship Managers are here to answer any queries you may have about Southern Cross Partners and your current portfolio:
Senior Relationship Manager
Heather Kentsley can be contacted on 09 535 2239 or 021 91330
and email heatherk@scpartners.co.nz
Bay of Plenty Relationship Manager
Carlen McEwen can be contacted on 021 1933 471 or 07 281 1519
and email carlene@scpartners.co.nz
Our Administration Team is on hand to help with accessing the website, receiving statements, the receipt of new funds and with any specific queries about your individual investments in such as repayment dates or interest payments. Investment Administration team can be contacted on 09 535 2239
and email investments@scpartners.co.nz
New Enquiries
Many of our existing clients refer others to us and all new enquiries are looked after by our Relationship Management Team so please feel free to make contact should you have someone who would like to talk to us.
Relationship Manager Auckland & Nationwide
Hend Salam is based in Auckland and can be contacted on 0800 00 58 43 and email hend@scpartners.co.nz.
Relationship Manager
Ross Latham is based in Auckland and can be contacted on 021 521 257
and email ross.latham@scpartners.co.nz.
Bay of Plenty & Waikato Relationship Manager
Carlene McEwen is based in the Bay of Plenty and can be contacted on 021 1933 471
and email carlene@scpartners.co.nz. Carlene is the person to speak to for all new enquiries in the BOP & Waikato area.
HOW TO
ACCESS THE
INVESTMENT
PORTAL ON
THE WEBSITE
Our website is where you gain access to the Investment portal. You will need to log in with your unique username that you were emailed.
Click here to be taken directly to the log in page and as in the previous
information, we are here to help should you require any assistance – just call.
Our website contains a
series of videos to assist
WEBSITE
LISTINGS
GUIDE
Here are some key features about the Mortgages we have on offer.
The majority of applications for borrowing come to us via the mortgage advisor network.
Our credit team assess all aspects of the application to ensure it meets our criteria including but not limited to;
All mortgages are first provided to the borrower by Southern Cross Partners Limited.
All mortgages must then be placed on our website portal for all registered investors to view within 3 working days – This means that ALL mortgages are offered.
Our nominee company Loan Investment Trustees Limited holds the first
mortgage which is registered on the title of the property and is held in trust for all investors.
We hold a register lisitng all investors in each loan
Type of Property Location Affordability Purpose of the loan
Loan size Loan to
LOAN
MANAGEMENT
AND
COMMUNICATION
It is our job as Loan Managers to
manage the loan on behalf of the lender of the funds, which is you, as the
investor.
Throughout the term of the loan we will be contacting the borrowers for assorted reasons and each time we do we will be communicating with you, usually by email.
Most of these communications are purely to keep you informed and no action
is required but please read each one carefully and do not hesitate to contact us should you require any clarification.
Our administration team would be your point of contact for questions regarding these communications.
WE WILL CONTACT YOU
AT THESE JUNCTURES;
6 weeks prior to loan maturity date
An update 2 week prior to loan maturity date
When a loan has been renewed
When a loan has requested to repay
If a borrower has missed any payments – in Arrears If we have issued a Property Law Act notice (PLA) and any updates Details regarding a mortgagee sale 1 2 3 4 5 6 7
STATEMENTS
& TAX
CERTIFICATES
A full Transactional Statement of your account is sent via post every 6 months for;An Opening Statement and Welcome letter are sent via email for all new transactions.
If you would like a statement of your investments in between these times please contact the Administration Team A Resident Withholding Tax certificate is sent in the first week of April showing all tax that has been paid to the IRD on your behalf.
The period 1 April – 31 August
The period
REPAYMENTS,
EXTENSIONS
& SECONDARY
MARKET
Your money is invested into a specific loan, with the terms of that loan fully disclosed to you, before you invest. Investors get their money back when a loan they have invested in repays (see below for what happens if a borrower is in default and the loan is not repaid in full).
Early Loan Repayment
All borrowers have the right (through law) to repay their lending at any time. This means that it is possible that the loan that you have invested in, may repay early. If this occurs, you will receive interest up to the day of repayment. You will then have the opportunity to reinvest your funds into another available investment.
As managers of your loan investment Southern Cross Partners may, in some cases, decide that an extension to the loan may provide the most efficient strategy to obtain loan repayment, and in these cases, you will be advised of the revised loan terms, including the new maturity date and your investment continues unchanged.
If you do not wish to continue with your investment with this new maturity date,
after the maturity date has passed. When the loan does repay, the funds are collected on your behalf by our Solicitors, (who normally deal through the borrowers’ solicitors). These funds are lodged to the Nominees Trust bank account, Loan Investment Trustees
Limited, and are then disbursed in terms of your instructions, which will either be: Pay by Direct Credit to your Bank Account
HOW DO I GET MY
MONEY BACK?
What happens if there is a shortfall?
It is possible, due to the borrower’s changed circumstances or a significant decrease in the value of the borrower’s property, that it may be prudent for us to accept a lower repayment amount which could leave a shortfall for investors. Alternatively, we may decide that a mortgagee sale will yield a better result for investors rather than accepting a lesser amount from a borrower. This could also result in a shortfall of funds (which the borrower and any guarantor is still obliged to meet). To learn more about what happens if there is a shortfall when a loan is repaid, click here
Exiting an Investment early
Should you wish to exit all or part of your investment prior to maturity, we do offer a Secondary Market service, which is where existing investments can be offered for resale (on our website) to other investors. In some situations, use of this service may incur an administrative charge of $175.00 and you should
familiarise yourself with our Secondary Market rules so that there are no
FREQUENTLY
ASKED QUESTIONS
Can you help me choose an investment?
Unfortunately, we are unable to help you chose an investment, this decision is yours to make. We can help explain any procedural matters that are unclear to you, but we cannot provide you with any advice or guidance in respect to individual loans or to your wider investment strategy. If this is required, we would urge you to speak to a suitably qualified Authorised Financial Advisor.
Can I get involved with managing the loan?
No. Southern Cross Partners is authorised to manage the loan and make all decisions
Secondary Market service where, in some circumstances, you can re-offer your loan for sale to other investors. Click here for the rules for this service.
What happens if the borrower does not pay their interest?
Firstly, Southern Cross Partners will deal directly with the borrower to sort out the problem. We have a lot of experience with this, and a range of strategies that we employ.
In respect to your interest payments, these are paid from the installments that the borrower pays to us. If they do not pay,
FREQUENTLY
ASKED QUESTIONS
When can I expect my interest payments?
Most interest payment are paid out monthly unless you have chosen a compounding interest investment (see next question) The borrower pays their interest into our trust account and this is then processed and paid out to all
investors on the monthly date that the loan was provided. EG the loan was taken out on the 10th of April therefore the investors interest is calculated to the 10th of the month and paid into their bank account on the next business day.
What happens if Southern Cross fails?
In the unlikely event of a failure of our business, we have a contractual arrangement with another finance provider to take over the management of the business. There may be some minor interruption to services while the transition occurs, but things would quickly be back on track, with no adverse effect to our investors.
Of course, the mortgage which supports your investment, as well as your interest payments, are all held in Trust by Loan Investment Trustees Limited. They do not form part of our business, and those funds / mortgage securities are not immersed in our business in any way. They are held completely separately, so any failure of Southern Cross Partners does not involve your Investment or your Interest Payments
How does Compounding Interest work?
When an investment is chosen that is listed as COMPOUNDING INTEREST the interest on your principle investment sum will be calculated daily and compounded (added to your principle investment sum) monthly. No interest payment will be
made throughout the term of the loan. The total principle investment sum, including all interest earnt will be paid at loan repayment. A statement can be supplied at any time upon request.
DEFINITIONS
LVR – Loan to Value Ratio, the loanamount as a percentage of the value of the property.
PLA – Property Law Act notice, a legal notice that can be issued by the mortgagee if the borrowers are in default Arrears – Missed loan payments
Drawdown date – The date the mortgage was provided to the borrowers
Panel Valuer – Valuer that is on the list as acceptable to Southern Cross Partners. We prefer larger firms that have the required checks and measure in place over sole operators.
GST Exclusive - The amount quoted has had the GST portion deducted from the value. Used for loans that have a business aspect to them. i.e. LVR calculated on the GST exclusive valuation.