Investors Frequently Asked Questions
How are my funds secured?
Finbase believes in providing secure investments to our clients. We always ensure that the loan amount does not exceed 60% of the property value and it is secured with a first ranking mortgage registered on the title.
What is the maximum Loan-to-value Ratio you lend up to?
The maximum LVR we lend up to is 60% of the property value. This helps to ensure that investor capital is secure in times of any market downturn or other unforeseen circumstances.
What happens if the borrower defaults on their repayment?
In the event that a borrower defaults on their repayment, Finbase takes immediate steps to recover funds. This includes initiating 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.
What is the risk of loss of any part of my funds?
Although Finbase has never suffered any loss of investor capital or interest, it is important to understand that there is risk involved with investing. 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 invested are secure. 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.
Besides first ranking mortgage on the property, do we take any additional security over the Borrower?
Yes, we take additional security over the borrower in the form of a personal guarantee. This provides us with an added layer of protection and covers any shortfall should the value of the property not cover the loan amount.
11%p.a. Return on Funds Invested
Maximum 60% Property Value Funding
Secured by First Ranking Mortgage
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Finbase is registered as a Financial Services Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 of New Zealand. Its registered number is FSP1003560