Business loan questions, answered.

Three things: a genuine business or commercial purpose for the money, suitable residential or commercial property in New Zealand to secure the loan with a first or second mortgage, and a realistic way to repay it, such as business cash flow, a property sale or a refinance. There is no minimum trading period. Every application is subject to assessment, and approval is never guaranteed.

Companies, sole traders and other business structures can apply, as long as the money is for a genuine business purpose and suitable New Zealand property is offered as security. The property can belong to the business or to its owners. HomeSec does not lend for personal or household purposes, such as buying or renovating your own home.

A default, arrears or tax debt does not automatically rule you out. HomeSec looks at the business purpose, the property and the repayment plan together. Tell us about any credit or IRD issues at the start so they can be assessed properly rather than found later.

The property usually belongs to the business or its owners. If someone else, such as a family member, offers their property, they take on a real risk of losing it if the loan is not repaid. Whether that can be considered depends on the scenario, and the property owner must get independent legal advice before signing anything.

Complete the short online application or call 09 888 6550. Tell us the amount, what it is for and when you need it, the property address, who is on the title, an estimated value, what is owed on it and to whom, and how you plan to repay. The team reviews that and tells you whether the scenario may fit and what is needed next.

No valuations or cashflow records are needed to make an enquiry. During assessment, expect to provide evidence of identity for each borrower and property owner, details of the property and its current mortgages, and something that shows what the money is for and how it will be repaid, such as an invoice, an IRD statement, a sale agreement or a letter from your bank.

Not to make an enquiry, and HomeSec does not ask for two or three years of accounts the way many banks do. If financial records would help show how the loan will be repaid, the team may ask for them during assessment.

HomeSec does not publish a standard rate, because pricing depends on the amount, the property, the mortgage position, the purpose and the full scenario. The interest, fees and conditions that apply to you are set out in writing before you proceed, so you can compare the total cost with any other offer.

Fees depend on the scenario. Any fee that applies, including any assessment fee, is set out in writing before you pay it or sign anything. Compare the total cost of a loan, not only its interest rate.

HomeSec loans are open term, so there is no fixed end date to race against. Interest and other costs accrue for as long as the loan runs, so plan how you will repay it, whether from business cash flow, a property sale or a refinance with a bank.

Not always. An approved HomeSec facility may offer up to six months with no scheduled payments. Interest and other costs still accrue during that time, and the exact payment settings are in your loan contract.

Yes. You can repay a HomeSec loan early at any time. Your loan contract sets out any interest, fees or notice that apply, so read it before you sign.

There is no end date to extend, because the loan is open term. If you need more money later, ask for a top-up. It is assessed like a new application against the equity available, so it is not guaranteed.

Contact HomeSec as soon as you see a problem coming. Default is serious: it can lead to extra costs, enforcement action and the loss of the property used as security. The consequences are set out in your loan and security documents, so get independent legal advice before you sign.