Brokerage commission is typically one percent of the loan and is paid directly to the broker on receipt of invoice following the settlement of the loan.
All Borrower(s) and Guarantor(s) must have separate legal representation and all costs associated with, and incidental to, the preparation of the loan documentation are to the account of the Borrower. Cressida legal costs for residential loans start from $800 + GST while legal costs for commercial loans start from $1,200 + GST. A quote for Cressida’s legal costs is available on request.
There are typically setup costs associated with completing the loan settlement which includes investigation, assessment, and inspection of the security property, and other parties to the loan. These generally range between $250 and $1,000. A quote for set up costs is available on request.
All registered valuations must be:
- from a registered valuer acceptable to Cressida
- no older than three months
- readdressed to Cressida Capital Limited
- confirm the current ‘as is’ market value for the subject property
- include photos, appropriate comparable sales evidence, and clearly state all assumptions
Interest charges are calculated by multiplying the loan balance at the end of the day by a daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365. Interest is charged to the account monthly and may be paid monthly in arrears, part-paid and part-capitalised to the loan account, or 100% capitalised to the loan account.
Interest rates maybe changed with 14 days written notice having reasonable regard to external factors such as movement in Cressida’s cost of funds.
An initial finance fee is nominated in the letter of offer and is payable on acceptance of the offer. Typically this is in two stages, part payment on acceptance of the letter of offer, with the balance paid either on settlement of the loan facility by deduction from the loan, or on an invoice basis directly by the Borrower. The initial finance fee normally ranges between one and two percent of the loan amount.
Under certain circumstances other fees may apply, for example, if the loan remains undrawn for five working days following the nominated settlement date, a holding fee may be applied to the loan account as those funds have been allocated and are not available to place elsewhere.
If a loan is materially varied or extended then a reasonable finance fee will apply. This is generally a minimum of one percent of the facility and is calculated to ensure that Cressida is no worse off as a result of the variation or extension.
Credit Contracts and Consumer Finance Act 2003
All loan facilities that fall under the CCCFA 2003 are classified as ‘regulated loans’ and are subject to a finance fee of between $800 to $2,500 and an adjusted interest rate of generally between 9.95% and 12.95%.
Anti-Money Laundering and Counter-Financing of Terrorism Act 2009
The Anti-Money Laundering and Counter Financing of Terrorism Act is designed to help detect and deter money laundering and terrorism financing. Under this law all financial institutions in New Zealand are required to do more to verify a customer’s identity and, in some cases, account activity.
The AML law requires all financial service providers to:
- Identify their customers before providing financial services
- Identify the source of client funds that form part of the lending transaction
- Monitor customer transactions on an ongoing basis
- Report certain transactions and suspicious activities and/or behaviours
Settlement and Advance of Funds
Prior to settlement Cressida requires all Conditions Precedent to be satisfied, all legal documentation to be correctly executed, and a drawdown notice with a solicitor’s trust account deposit slip. Urgent settlements are handled on a priority basis.
Prepayments of part or all of the loan can be made at any time provided you have given us at least five working days written notice of the intention to do so. As a prudent lender Cressida needs to manage both cashflows and liquidity and as a result any flexibility around repaying part or all of the loan facility during the term of the loan needs to be agreed when the loan is established. In the absence of any prior agreement an early repayment charge generally applies.
Overdue Facility Fee
Should a loan facility run past the repayment date and not be repaid, and with no arrangements to extend the loan being agreed, then an overdue facility fee of between one percent and two percent of the loan balance at that date will be charged to the loan account.
Missed Interest Payments
In the event a scheduled interest payment is not made then a $200 missed payment fee will apply.
A written confirmation is required of whether or not the Borrower is registered for GST and confirming whether or not GST has been claimed on the property. If there is any uncertainty the GST exclusive value is used to calculate the loan to valuation ratio.
All property is required to have an adequate level of insurance cover with a credit rated insurer. Commercial properties may require loss of rents insurance and, under certain circumstances, unit titled properties will need to have mortgage redemption insurance.
Residential properties subject to “Sum Insured” insurance policies will be reviewed to ensure insurance cover is adequate.
Monthly Account Fee
A monthly account fee of $25 per calender month applies to all new or varied loan facilities to recover the cost of administering the loan.