Bridging Finance also referred to as an interest only loan is a short-term loan from 1 month up to 12 months and using your property as security.
What you will learn in this Bridging Finance Guide:
The most common uses we see for Bridging finance are:
These are just a few reasons for a Bridging Finance loan. If you are not sure if this is right for you feel free to call one of our team on 0800 000 724.
For your Bridging Finance or an Interest Only loan, we use your property as security by the way of registering a caveat over your property. We then calculate your interest-only repayments weekly, fortnightly, or monthly to suit your pay cycle.
With some Bridging Finance Loans, we may be able to do a fully capitalising loan. This means we will add interest to your loan and not take any repayments until the settlement of your property.
Using Bridging Finance to tidy up your home for sale, cover marketing costs, or clear some short-term debt can take the stress out of selling or refinancing your home. It can also help you get the best price.
The reasons to use Pioneer Finance when needing a Bridging finance loan are:
That’s easy we cover the main centres Auckland, Hamilton, Tauranga, Rotorua, New Plymouth, Taupo, Gisborne, Napier, Palmerston North, Wellington, Nelson, Christchurch, Queenstown & Dunedin.
My property is not in one of those areas? No problem we can look at any property in New Zealand on a case-by-case basis.
You can apply for a bridging loan with Pioneer Finance if you are:
You do need to show that you have the affordability for the loan and that you are who you say you are. You can do this by providing the following:
Bridging Finance loans will have various fees attached, which may include:
Some of these fees will be charged to the loan upfront or are calculated in your weekly, fortnightly, or monthly installments. Other fees can be charged at the end of the loan term such as early settlement fees or if you used your property as security a caveat removal fee can be charged.
For more details on our fees and charges go to our Interest rates and fees page in the important information section.
Amount Borrowed $100,000.00
Establishment Fee $780.00
Caveat Fee $165.00
Total including fees and insurance $100,945.00
Interest Rate 12.95%pa
Monthly Account Fee $12.00
Loan Term 12 Months
11 Monthly repayments of $1,101.09 plus 1 final repayment of $102,046.00
The above is an example of a common loan request and gives you an indication of what the monthly loan repayments will be. Your establishment fee may be different depending on the security used and the time is taken to process your application. We would also like to point out that the Payment Protection Insurance used in this quote is not compulsory.
In summary, bridging finance loans with Pioneer Finance:
If you are over the age of 18 (up to the age of 21 you may require a guarantor), a permanent resident of New Zealand, earn a regular income, and can demonstrate the ability to repay the loan, you may qualify for a Bridging Finance loan.
We offer loans from $5,000 to $100,000 on a bridging finance loan in New Zealand. The amount we lend does depend on the security offered for the loan. The more security offered the better chance we will be able to lend the amount you require. We will also need to check your affordability and credit profile.
Approval time depends on some variables:
In saying that we do endeavour to give a same day answer on all applications received.
Yes, you can make extra repayments; or you can increase your minimum repayment to help pay your loan off earlier. We do charge a small early settlement fee of $75.
Applying at multiple finance companies will no longer affect your credit rating in New Zealand. Since October 1st 2019 every credit check done by a finance company is listed as a quote with Equifax, Centrix or Illion and will only affect your credit rating should you accept the loan offer.