Non-bank lender Conrad Funds Management (CFML) has secured $100 million in funding from Westpac, and plans to significantly increase its mortgage lending activity across New Zealand.
CFML is a licensed fund manager based in New Zealand, primarily providing investment funds focused on property. It also offers loans for owner-occupied and investment property, and deals with both interest-only and principal and interest loans.
Westpac’s $100 million funding line will allow CFML to scale up the mortgage lending side of its business. It will be targeting borrowers who have been refused credit from mainstream banks, as lending conditions remain strict.
Non-bank lenders have taken a significant foothold in the market over the past 2-3 years, as more New Zealanders are turned away from main banks due to credit history, self-employment or other issues. A number of Australian non-bank lenders entered the New Zealand market last year, including Pepper Money and small business specialist Prospa.
CFML’s funds are deployed by Funding Partners, which is led by director Evan Barnes. Barnes told goodreturns that CFML is looking to offer “fast turnarounds and solutions for advisers and their clients,” and will be able to go from application to settlement in less than a week.
“CFML offers extra points of difference, as it can lend to offshore borrowers, fund development properties, and take offshore income into consideration,” Barnes said. “We can lend on apartments, there is no minimum size, and want a geographic spread, not just in the main centres."