Wandering around traditional banks usually makes us tired. It gives us a chance to try our hands on unconventional non-banking systems. Here, we discuss the top 6 non-banking lenders to help you get various approved loans. Especially if you are seeking a “Property Development Loan,” which is in demand nowadays. So, if you want the same, our top six non-bank lenders from the past financial year can help you solve your problem.
These top six non-bank lenders highlight partners that help property developers achieve their goals with unique lending criteria. Remember, the list below is based on an honest assessment, not the lending volume of over 140 non-banks across New Zealand. Furthermore, these non-banking lenders offer unique strengths, from regional support to large project funding and flexible terms, helping us better serve developers all over New Zealand.
Top 6 Property Development Loan Providers Firms in 2024
1. ASAP Finance
First up is ASAP Finance. These guys have a great reputation as one of the best non-bank lenders in New Zealand, known for their quick approvals and high flexibility, especially in the development space. If you are looking at ASAP Finance, they can help you lend up to $50M+ easily without any strict requirements like pre-sales or valuations. Moreover, you may find it very promising if you are in your starting phase, as it is ideal for small to mid-sized developments.
Founded by brothers Adarsh and Darpan Patel in 2004, their unique structure often makes them a cost-effective choice despite higher interest rates. However, the downside includes conservative internal risk measures and high rates that can challenge bridging or land banks.
2. Construction Loans
As one of New Zealand's top property development loan providers in 2024, Construction Loans by NZ Mortgages provides customized mortgage advice and financing for first-home buyers, homeowners, builders, and developers. Recently the team has secured their own funding which will help developers get the best rates for their projects across New Zealand.
With over a decade of experience, they help clients make the most of government schemes, choose the right lenders, and plan deposits to maximize their borrowing power. Their customer support team is dedicated to making the loan process smooth from start to finish, helping Kiwis reach their home ownership and development goals with confidence.
3. Pallas Capital
The third non-banking lender is Pallas Capital. This well-established Australia-based non-banking organization holds a 1.8bn funding capacity (huge!). They jumped into the lending scene in NZ in 2022, Pallas Capital offers funding up to $100M for development projects. It offers higher leverage for development, and primarily focuses on bridging, commercial and residual stock lending. They focus on major cities and various asset types with competitive pricing.
However, they require a minimum of $5M for development lending. Furthermore, the limitations you might face are a minimum of $5M lending for development, focused on major city centers, and with pre-paid interest on bridging deals resulting in a higher effective rate. If your project is a medium to large commercial development, Pallas Capital should definitely be on your list.
4. Spinnaker Capital
Fourth place is Spinnaker Capital, another popular non-bank lender in New Zealand. This non-banking organization was established by Martyn Reesby in 2009. Moreover, Spinnaker funds can fund up to $30M on development projects in major cities across New Zealand. The ease of work, flexible terms, and strong industry reputation make it a much more approachable option.
Furthermore, Spinnaker Capital prefers to work closely with brokers. It is valued for mid-large projects in Auckland, Wellington, and Christchurch, with minimum funding value is up to $4M. Another great option for central commercial development projects.
5. Mutual Credit Finance (MCF)
Fifth on our list of non-bank lenders for property development loans is Mutual Credit Finance (MCF). It is a small-scale non-banking lender in Christchurch, famous for providing bridging and development finance. MCF was established in 1956, making it the oldest and most reliable option. Moreover, it provides efficient, competitively priced loans for small projects (under $3M), especially in regional areas.
Due to the small size of funding, their quick approvals and local expertise make them ideal for Christchurch and South Island transactions. However, along with its benefits, MCF has a few drawbacks, such as varying lending limits and frequent changes based on the active credit policy. Great for those smaller, more residential development projects.
6. First Mortgage Trust (FMT)
Finally, our last entry on the Property Development Loan list is First Mortgage Trust (FMT). These guys have a great reputation in the market as one of the best non-banking lenders in New Zealand. It provides its services nationwide with administrative offices in big cities. Moreover, as a contributory fund, FMT manages around NZD 1.6 billion, enabling it to lend on a large scale.
What makes it preferable is its ability to lend loans nationwide with competitive rates and flexibility, especially for larger projects ($40M+). Besides, its lower-risk profile might suit you if you seek bank-like rates with more flexibility. However, limitations you might face include a bank-like risk profile with quick indicative terms and a slower formal credit process. Looking for funding on a large commercial scale? FMT may be your best choice, but they may be tricky to secure funding on a smaller development.
Frequently Asked Questions
1. What are non-bank lenders?
Non-bank lenders provide loans without being traditional banks, often focusing on specific types of financing.
2. What is a Property Development Loan?
It’s a loan to fund property development projects like residential or commercial buildings.
3. Who are the top non-bank lenders in 2024?
The top lenders are ASAP Finance, Construction Loans, First Mortgage Trust, Pallas Capital, Spinnaker Capital, and Mutual Credit Finance.
4. What are the benefits of non-bank lenders?
They offer quicker approvals, flexible terms, and cater to various project sizes, making them good alternatives to banks.
5. Are there any drawbacks to using non-bank lenders?
Potential drawbacks include higher interest rates, minimum loan amounts, and variable lending limits.
Conclusion
In 2024, New Zealand's top non-bank lenders provided diverse financing options for property developers, offering flexibility for large and small projects. These reliable lenders present solid alternatives to traditional banks with unique criteria and streamlined approvals. So, are you seeking a reliable non-banking lender to get your Property Development Loan approval quickly? Then, you may find the above information helpful in choosing the one without any worries. For more information get in touch with us.
