The battle for non-bank business is heating up. Cressida’s new product, Cressida Gold, will bring the firm in line with its non-bank rivals with a lower fee base for low LVR clients, advisers said.
Cressida Gold interest rates start at 6.95 percent per annum. Fees are 1 percent for three months to three-year terms. The product is aimed at those seeking short-term lending, equity release, foreign residents, and recent immigrants.
Cressida Gold is targeted at clients up to 65 percent LVR. It is only available for properties in the Auckland area, according to the firm. Advisers said the product also excluded land or construction properties, and CCFA applications.
Nigel Staples, Cressida Capital director, said the company has $50 million in capacity to scale up “as required”. Staples said the launch had been driven by tightening from the major banks, as non-banks seek to build market share and gain an advantage. “The ongoing tightening of the major bank’s criteria has made it much more challenging for clients who don’t fall neatly within those criteria.”
Staples said Cressida is planning to deliver quick turnaround times on the product. “It took us some time to identify an appropriate funding structure to support this aspiration, and now that’s in place the market response has been very positive. Our advisers can continue to deal with people and a brand they know and trust and benefit from our high service standards and rapid turnaround times.”