Fund invested in our single investment offers are on-lent by Finbase to provide lending secured by first-ranking mortgages to commercial borrowers for the purposes of short term property projects. Investors have security over Finbase's security.
Investments in the Finbase PIE Fund are pooled and invested across a diversified portfolio of loans secured by first ranking mortgages, and cash. First-ranking mortgage are granted in favour of the Fund's trustee to secure lending.
The maximum LVR we lend up to is 60% of the property value. This helps to ensure that investor capital is preserved in times of any market downturn or other unforeseen circumstances.
In the event that a borrower defaults on their repayment, Finbase takes immediate steps to recover funds. This can include initiating legal proceedings, and if required, Finbase will manage the mortgagee sale process of the asset which the loan is secured against to recover the principal amount owing plus any interest due. Please note that we cannot guarantee any returns or predict whether or not there will be any financial losses.
Although Finbase has never suffered any loss of investor capital or interest, it is important to understand that there is risk involved with investing, and that past performance is not a reliable indicator of future performance. These risks could involve the borrower defaulting on a payment, or being unable to exit the asset to recover the full amount of capital.
Finbase takes steps to ensure that all funds are invested prudently. We do not lend more than 60% of the property value. However, as with any form of investments, there is always an element of risk involved so it is important to understand these risks. If you are not comfortable with the level of risk, you should not invest.
Yes, we typically take additional security in the form of a personal guarantee from individuals associated with the borrower. This provides us with an added layer of protection and an option for recovering any shortfall should the value of the property not cover the loan amount.
Finbase's single investment offers cater to select wholesale investors and have a minimum investment requirement of $100,000.
The minimum investment threshold for the Finbase PIE Fund is $10,000, and the Fund is open to all wholesale investors, including eligible investors.
A wholesale investor is a person or company that is typically either large or experienced in investing, and meets the legal criteria of what is considered a wholesale investor: Read more here.
Distributions will be deposited into your designated bank account after the deduction of tax. If appropriate, you have the option to reinvest these funds into future investments.
Finbase's single investment offers are generally illiquid fixed term investments.
If you wish to exit your investment before the loan maturity date, Finbase will work with you to manage the process. We can arrange to facilitate an early exit from the loan by substituting it in part or as a whole to another qualifying wholesale investor.
However, it is important to note that there may be costs associated with this and that it may not always be possible to organise another investor to replace your position in the investment.
Investments in the Finbase PIE Fund are subject to a minimum investment term of three months. After the initial three month term, withdrawals can be made by providing an exit request. Withdrawals are processed quarterly, on the last business day of each quarter. However, you should be aware that in some circumstances we can suspend or defer withdrawals – refer to the Information Memorandum for the Finbase PIE Fund for more details.
Finbase's single investment offers don't obligate you to invest in non-metropolitan areas. Finbase’s loan book is well diversified across all types of property located throughout New Zealand, so you can choose the areas that best suit your investment strategy and risk appetite.
If you invest in the Finbase PIE Fund, you will gain exposure to a diversified portfolio of first mortgage loans selected by us. This could include a combination of metropolitan and non-metropolitan areas.
For Finbase's single investment offers, the term of investment depends on the loan being offered. Loans are short-term with the typical term being up to 1 year. Every loan is different and the terms are always made clear to investors before they make any commitments.
If you invest in the Finbase PIE Fund, your investment is subject to a minimum investment term of three months. After the initial three month term, withdrawals can be made by providing an exit request. Withdrawals are processed quarterly, on the last business day of each quarter. However, you should be aware that in some circumstances we can suspend or defer withdrawals – refer to the Information Memorandum for the Finbase PIE Fund for more details.
If you invest in one of Finbase's single investment offers and the borrower repays early, Finbase will return all of the investor’s funds plus any accrued interest. The full amount is paid back to the investor as soon as we receive it from the borrower. You will then be able to redeploy funds into another investment if you choose to do so.
Where a borrower from the Finbase PIE Fund repays early, we will normally look to redeploy the amount repaid to another loan as soon as possible.
No, the borrower pays interest only. The loan principal amount is paid back in full at the end of the loan term.
We carefully review each loan application to ensure it meets our credit criteria. We evaluate the purpose of the loan, the borrower's exit strategy, and the value of the security asset. When necessary, we also conduct background and credit checks, and assess repayment capacity.
The loan term is fixed and cannot be extended by right. However, the borrower may request an extension. Finbase will first offer the opportunity to you continue investing in the loan. If you require your funds back, Finbase will offer the investment to other wholesale investors.
However, be aware that if a borrower defaults in their repayment obligations this could result in a delay in the repayment of your investment.
When investing in any asset class, it's crucial to consider interest rates. All our lending is undertaken on a fixed rate basis, meaning the interest rate paid by borrowers cannot be changed during the loan term. However, we carefully evaluate the possibility of rate increases and tailor our loan terms accordingly. By keeping loan terms comparatively short, if interest rates do rise, you'll have the opportunity to participate in higher-yielding investments once your loan is repaid. It's worth noting that the opposite holds true in a declining interest rate environment.
Finbase's single investment offers gives investors the power to choose the particular investment opportunity. We will provide full disclosure of information relating to each prospective investment and then you can make an informed decision.
If you invest in the Finbase PIE Fund, you will gain exposure to a diversified portfolio of first mortgage loans selected by us.
Finbase charges an origination fee and ongoing service fees to the borrower. Additionally, borrowers are required to pay a one-off establishment fee that covers all legal costs associated with setting up the loan agreement. We may also charge borrowers other fees, such as for loan defaults.
There are other fees and expenses associated with an investment in the Finbase PIE Fund – refer to the Information Memorandum for the Finbase PIE Fund for more details.
Finbase does not charge investors any fees to use our single investment offer services.
Finbase charges an origination fee and ongoing service fees to the borrower. Additionally, borrowers are required to pay a one-off establishment fee that covers all legal costs associated with setting up the loan agreement. We may also charge borrowers other fees, such as for loan defaults.
There are other fees and expenses associated with an investment in the Finbase PIE Fund – refer to the Information Memorandum for the Finbase PIE Fund for more details.
Finbase does not offer direct real estate investments.
When you invest in a single investment offer, your funds are on-lent by Finbase in a loan secured by a first-ranking mortgage over real property. Investors have security over Finbase's security.
Investors receive interest payments on their investment at regular intervals or as agreed upon by Finbase and the investor prior to making the investment.
If you invest in the Finbase PIE Fund, you are investing into a managed investment scheme that makes investments in a diversified portfolio of loans secured by first-ranking mortgage, and cash.
Finbase lends funds to companies, trusts and individuals that are commercial borrowers. We also lend funds to developers for the purpose of bridging or refurbishing existing properties. We do not provide any consumer lending.
We carefully consider all loan applications to ensure they meet our credit criteria
The loans are sourced from a variety of places including mortgage brokers, financial advisors in addition to our own investor and developer networks.
The borrowers may be seeking finance outside of the main banking institutions for a variety of reasons. Their loan requirements could be too complex to be funded by traditional lenders, or they may not meet traditional lenders' more rigid credit criteria. Finbase is well positioned to meet these types of borrower needs as we work to understand the borrower's project and exit strategy.
The loans are always secured by first-ranking mortgage over property assets located throughout New Zealand, generally involving residential or commercial properties. We do not lend against leasehold properties.
Yes, HP Capital Limited (trading as Finbase) and Finbase Funds Management Limited are registered as Financial Service Providers under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
HP Capital Limited (trading as Finbase) and Finbase Funds Management Limited are registered as Financial Service Providers under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
However, we are not licensed by the Financial Markets Authority (or any other regulatory body) as that is not required for the services we provide.
Finbase always carries out an evaluation of the asset that is used for security. In some cases, an independent property valuation is commissioned by a qualified valuer to ensure that the loan amount does not exceed 60% of the property value. In other cases, we may rely on other information to assess value, such as the Government valuation or an iValuation report.
Our relatively conservative lending limits help to mitigate the risk of a loss investor capital from any adverse market conditions and unforeseen events. Additionally, for investors in a single investment offer, we provide investors with full disclosure of all information relating to each prospective investment so they can make informed decisions.
However, it is important to understand that there is risk involved with investing, and we cannot guarantee any returns or predict whether or not there will be any financial losses.
RWT stands for “Residential Withholding Tax”. This is a tax that is applicable to interest income from debt security investments (such as loans) in New Zealand. The amount of RWT you are liable for depends on your taxable income. Where you invest in a single investment offer we require your RWT rate, and deduct RWT from your distributions before they are deposited into your bank account.
Investments made in the Finbase PIE Fund are subject to PIE tax, rather than RWT – refer to the Information Memorandum for the Finbase PIE Fund for more details.
Finbase’s current average LVR across its entire loan book is 41% as at November 2024. However, remember this is an average figure only. The actual LVR for any investment offer will be more or less than this amount.
Yes, Finbase's directors and shareholders have personally invested in the Finbase PIE Fund and single investment offers.
Finbase has a track record of preserving investor capital and has not experienced any loss in investor capital to date. However, it is important to be aware that past performance is not a reliable indicator of future performance.
A first mortgage is a first-ranking mortgage registered against real property assets, such as a house or commercial property. A lender that holds a first-ranking mortgage is given priority over any lower-ranking mortgages. In the event of default, the lender has the first right to repossess and sell the property in order to recoup their losses.