CFML secures $100 million funding line from Westpac

Under the deal, Westpac will provide substantial firepower to the non-bank, which is ramping up mortgage lending activity across New Zealand. The funding line will provide $100 million.

CFML is targeting borrowers turned away by the major banks as traditional lenders maintain tight credit conditions.

Until now, CFML has operated with using wholesale and retail investors, and the partnership with Westpac marks the next phase as it aims to take a bigger slice of the growing non-bank lending market.
The increased size and scale of the company's lending platform will see it grow its lending book over 2020.

Evan Barnes, director of Funding Partners, which deploys CFML's funds, says CFML will offer "fast turnarounds" and solutions for advisers and their clients. Barnes says CFML will be able to move from application to settlement in under a week.

Barnes adds: "CFML offers extra points of difference, as it can lend to offshore borrowers, fund development properties, and take offshore income into consideration. We can lend on small apartments and want a geographic spread, not just in the main centres."

Non-banks increased lending by more than 9% in the year to June, according to KPMG's annual non-bank market report.

Non-banks are capitalising on growing opportunities, with more entering the market each year. Pepper Money, the Australian giant, launched in New Zealand in September.