Wholesale investor information
A transaction-by-transaction overview of Tawa's indicative first- and second-mortgage lending framework.
Indicative framework
Return ranges, terms and LVR limits are indicative only and remain subject to each transaction's documentation and review.
01
6.5%-8.0% p.a.
Indicative return
02
9.0%-12.0% p.a.
Indicative return
Loan-to-value ratio
LVR compares total secured lending with property value. It is one part of a wider assessment and does not remove investment risk.
Illustrative structure
Total secured lending: 70% LVR
Repayment priority
First-ranking secured claim
Repaid after prior-ranking claims
Residual value after secured lending
Illustration only. Security ranking does not guarantee repayment or recovery.
Security framework
The nature and priority of each security package is reviewed before funding; security does not make an investment safe.
A first-ranking registered mortgage is security over property, subject to the registered terms, prior interests and the outcome of any enforcement or sale.
A second-ranking registered mortgage is repaid after prior-ranking claims. This can increase the risk of loss, delay and uncertainty in a recovery.
A GSA may secure obligations against specified borrower assets where it is included in the transaction documents. Its value and ranking depend on the relevant circumstances.
A personal guarantee may be requested where applicable. Recovery depends on the guarantor, the guarantee terms and available assets, and is not assured.
Review sequence
The process remains subject to internal approval and completed legal documentation.
Review borrower purpose, repayment strategy and requested facility.
Assess valuation evidence, title, ranking and total secured exposure.
Consider credit history, servicing, guarantees and transaction risks.
Complete approved loan and security documentation before funding.
Monitor material conditions, maturity and the agreed repayment path.
Risk considerations
These considerations are not exhaustive and require New Zealand legal review before production.
Property values can change and valuation evidence can differ from sale outcomes.
A borrower may not meet repayment obligations when due.
Prior-ranking claims can reduce or delay amounts available to a second-ranking security holder.
Enforcement can take time, require professional costs and be affected by legal and market conditions.
A facility may require an extension and the original repayment timing may not be achieved.
An investment may not be readily transferable or repayable before the relevant transaction concludes.
Realisation proceeds may be insufficient to repay capital, income, costs or other amounts in full.
