Xceda adds another string to its bow
Reserve Bank licensed deposit taker Xceda is starting to broaden out its loan products offering.
Saturday, November 30th 2024, 6:00AM
By Daniel McGrath
Since its new ownership and management took over in 2018 (when the business was called Asset Finance Limited and based in Whakatane), Xceda has transitioned from being a personal loans business to a specialist short-term (bridge) mortgage lender.
Its head office is now based in Auckland, but it retains its original office in Whakatane from where it has its operations team, including the customer service division for the deposit taking side of the business.
Xceda is now making a further expansion of its product offering with its recently launched Property Investment Loan. This is a five-year interest only-loan, tailored specifically for residential property investors.
“Entering the longer-term mortgage market is key for us to ensure we are able to complement our shorter term lending with a product that gives us more balance to our book,” Xceda chief executive Daniel McGrath says.
“This fits in well with the deposit side of our business, which is growing strongly ahead of the pending deposit compensation scheme (DCS) which will be launched by the Reserve Bank on July 1 next year.”
Xceda now has two core lending products: Short term bridge mortgages from 3 -24 months, and the longer term Property Investment Loan.
The key features of Xceda’s service offering include:
- Both CCCFA and investment purposes lending
- Full Doc, Low Doc and No Doc options available for servicing verification
- Flexible repayment structures
- Loan to Value Ratios that can extend up to 80%
- Quick turnaround times, and
- Ability to workshop deals with advisers to find solutions.
McGrath says, “the key to Xceda’s offering is being able to look at a loan scenario with an adviser and try and find a solution for the client”.
Case Study
A recent deal example McGrath highlighted was a client that was seeking an equity release from his two investment properties to invest further funds into his business that had immediate cashflow requirements.
Xceda was able to refinance both properties away from a main bank that was reluctant to allow more lending. Structured as a 12 month loan, the client was able to increase the LVR to achieve the cash out (i.e. equity release) that was required.
In such scenarios the ability to solve a problem quickly is invaluable for an adviser’s relationship with their client. And can lead to more longer-term solutions.
McGrath added: “Even though this is an example of our short-term or bridge lending capability, by now adding our longer-term investment loan product for five years on an interest-only basis, it gives more flexibility for the client to stay with Xceda for longer if this is preferred.”
Xceda has recently joined as a panel lender to Link Financial Group (LFG) and Kiwi Adviser Network (KAN), and are in discussions with other adviser platforms to grow its distribution.
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