FAQs

Real Estate Funders Frequently Asked Questions

HomeFAQs

HOME IMPROVEMENT & MARKETING LOAN FAQ

What is the interest rate?

Our rates are clear and transparent.  You simply pay a flat interest rate of 1.85% of the funded amount per month.

Eg. Funded amount x 1.85% = the interest you pay every month you have the loan.

It works out to be cheaper than most credit cards.

Is there an application fee?

Yes, a one-off setup fee of $395 is the first payment.  (If an application is declined no application fee is charged). Then 3 months goes by until the next payment is direct debited from the homeowner.

What term can I spread payment over?

Real Estate Marketing Fee loans have a 3 month Payment Holiday period, then the loan begins and is a for 6 months with easy monthly installments.

Can I spread payment over a longer term?

No.  We specialise in short term loans, however if your loan is causing you hardship, please contact us to discuss longer terms for repayment.

Can I pay it off early if I choose?

Yes. You can settle your loan in full at anytime by simply contacting us and arranging to do so. There is a $125 Settlement Admin Fee payable to cover our processing costs.

Can I have more than one loan with Real Estate Funders at once?

Yes, subject to approval.

When will I know I’ve been accepted?

With our instant online processing your application is processed and setup ready to go from the moment you press the “submit” button.  Assume you’ve been approved unless we tell you otherwise within 24 hours.

Do you credit check me?

You may or may not be credit checked depending on various factors (such as the amount borrowed etc) However do expect to be credit checked.

MAKING PAYMENTS:

How do you take the money from me?

All loan payments are made via Direct Debit. Upon the sale of your home, your solicitor must fully repay the loan from settlement proceeds.

Are there any other Fees?

There is a small Admin Settlement Fee of $125 charged upon loan settlement to cover processing costs of liaising with your solicitor. There is a schedule of other fees below in the FAQ.

When do payments start?

The  setup fee is direct debited from you within one week after the signup date and then loan payments start 90 days after the loan was confirmed. This 3 month (90 days) payment holiday period gives you time to sell and settle your home. Upon settlement your solicitor will repay the loan from the sale proceeds.

What is the Payment Holiday?

The Marketing Fee loan has a Payment Holiday of 3 months after the setup fee is paid. This means that after you have paid the Setup Fee, there are no more payments for 3 months. This gives you time to get your home sold and settled before the 6 x monthly loan installments begin.

Can I pay weekly or fortnightly instead of monthly?

At Real Estate Funders we work on monthly payments as our loans are setup this way.

Should you require to change this to weekly or fortnightly, then there is a fee of $65.00 for changing the payment schedule.

What happens if I miss a payment?

Our systems are robust and we have a dedicated Direct Debiting team that manage all payments. The computer system knows when your payment is due and “notices” if it misses.  It will automatically send you a text message to say that your payment missed and will give you details on how to catch up and make payment. You can email or call us anytime to discuss the issue on [email protected] or 0800 434 255. Out team will also follow you up to discuss if you begin to have issues with payments.

If I miss a payment does it automatically affect my credit rating?

Not usually.  We understand that sometimes life happens and we do all we can to work with you to ensure your payments are caught up to date and manageable for you.

What if my bank account changes?

Simply contact our Direct Debiting team and they can update it for you to ensure your payments continue uninterrupted.

Who do I contact to query my loan or discuss payments etc?

You will be given full contact details of our Direct Debiting team once your application has been submitted/approved, call us on 0800 434 255, email us [email protected]

Who does Real Estate Funders pay the money to?

We pay the money directly to your Real Estate Agency for the marketing costs, for any home improvement loan items we pay this money direct to the Vendor.

Are there penalties for paying the loan off early?

You can settle your loan in full at anytime by simply contacting us and arranging to do so.  A great thing about our loans is that you only pay interest for the months you’ve used the loan plus the nominal $125 Settlement Admin fee.

What if my Agent isn’t signed up to offer Real Estate Funders payment options?

We work NZ wide and quality brand agencies are already signed with us. If your individual agent is not yet one of our clients please suggest they contact us by completing our online agent signup www.realestatefunders.co.nz/agentsignup or phone 0800 434 255 or email us at [email protected] We’d be happy to show them the benefits of signing with us. (it’s free for them to do so!)… or just let us know their details and we’ll follow them up for you.

What happens if I am unhappy with the services of the Agent who’s organised the Marketing Fees I’m funding – can I stop payments?

No please don’t stop payments. Your relationship with your agent/agency (who’s invoice you’re funding) is separate to your funding relationship with us.  If you are unhappy with your agent or agency, although unfortunate, that doesn’t negate your responsibility to honour your loan repayments to us.

Eg. Just like a house or car loan, if your car breaks down or your house burns down, it doesn’t cancel your mortgage/car loan.

Are you just like a credit card?

No, we are not a credit card.  We are structured differently.  Credit Card companies aim for you to have a balance owing for as long as possible (that’s where they make their money!).  We are short term loan providers.  We WANT you to pay your loan off.  It is a specific loan for a specific reason – unlike the open-ended nature of credit cards.

Are you a responsible lender?

Fee Funders NZ Ltd t/a Realestate Funders is committed to being a responsible lending company and is a registered member of the Financial Service Provider Register, as well as the Financial Dispute Resolution Scheme.

Are you a registered finance company?

Yes we are a Registered Financial Service Provider – FEE FUNDERS NZ LIMITED (FSP287345) and a Member of

Financial Services Complaints Limited

Level 4, Sybase House, 101 Lambton Quay, Wellington 6011
http://www.fscl.org.nz

SCHEDULE OF CHARGES:

Fee Schedule

Setup Fee $395.00
The loan setup/admin fee payable when you start the loan
Interest Flat Rate – Standard 1.85% per month
The standard flat interest rate on the loan calculated on the initial loan amount
Interest Flat Rate – Default 2.50% per month
The interest you will pay if you default (do not pay on time). You may be charged this from the time of your first default until your loan is completely up to date.
Dishonoured Payment $12.50
This is the charge for having a payment reverse (i.e not enough money in your account)
Single Payment Variation Fee $12.50
Charge for us varying your single payment amount or date
Change Payment Schedule to Weekly/Fortnightly $65.00
When you get us to change all of your payments to fortnightly or weekly
Loan Refinance $125.00
When you need to stop the current loan and setup a new one due to additional amount or longer term
Early Repayment Fee $125.00
When you wish to repay your loan to us early and we need to recalculate and produce a settlement statement for you.
Statement Fee $22.50
When you need us to generate a settlement statement for a certain date for you
Additional PPSR Registration Fee $25.00
If we need to secure our loan to you with a registration on the Personal Property Security Register
Caveat Lodgement and Removal $895.00
Should we require to lodge a caveat security against your assets (if your loan is a large amount – or if its a condition of loan approval) or repayment becomes doubtful or you are in formal default 

 

AGENT FAQ

FUNDED AMOUNTS & TERMS:

Is there any Cost to the Agent / Agency?

Unlike our competitors with Real Estate Funders there is Absolutely $0.00 cost to Agent or Agency.

What amounts can you fund?

We fund fees from $1000 – $25,000.

What items can you fund?

We fund the marketing fees for the sale of the property plus home improvement items such as staging, landscaping, painting, carpet etc … just ask us!

What terms do you spread payment over?

Your customer can spread payments over 6 months with us. Of course there is a 3 month Payment Holiday period at the start, so effectively the loan is 9 months in duration. Many customers have their house sold within the Payment Holiday period!

Do you offer funding over a longer term? (e.g. 12 or 24 months)

No we prefer 9 months – we specialise in short-term loans.

History and experience show that 6-9 months is the “sweet spot” for safe lending terms.

We do however modify loan terms if our customers are experiencing hardship at anytime.

How quickly can you process my Application?

All applications are processed within 24 hours.

Does it cost to sign up with you?

No.  There is ZERO cost to you, the Agency.  You the agency carry no risk or obligation. It is free to sign up with us, and free to use our services.

How does Real Estate Funders make their money?

We make our money from the interest charged on the loan to your customer.  The person who’s spreading payment of your presentation or marketing fees loan pays the interest – not you the agent.

What is the interest rate and how is it calculated?

We charge a flat interest rate of 1.85% of the funded amount per month.

Eg. Funded amount x 1.85% = the interest charged every month they have the loan.

Is there an Application Fee?

Yes, a one-off setup fee of $395 is the first payment.  (If an application is declined no application fee is charged). Then 3 months goes by until the next payment is direct debited from the homeowner.

Are the interest rate and the application fee the same regardless of the amount funded?

Yes.  The interest rate and the nominal setup fee are the same regardless of the amount being funded.

Are there penalties for paying the loan off early?

Your Customer can settle their loan in full at anytime by simply contacting us arranging to do so.  A great thing about our loans is that your customer only pays interest for the months they’ve used the loan plus a nominal $125 Settlement Admin fee.

LIKE A CREDIT CARD?:

Are you similar to a credit card company?

No, we are not a credit card.  We are structured differently.  Credit card companies aim for people to have a balance owing for as long as possible (that’s where they make their money!).  We are short-term loan providers.  We WANT our Customers to pay their loans off.  It is a specific loan for a specific reason – unlike the open-ended nature of credit cards.

What is the Payment Holiday?

The Marketing Fee loan has a Payment Holiday of 3 months after the setup fee is paid. This gives you time to get the homeowners house sold and settled before the 6 x monthly loan installments begin.

Why is using Real Estate Funders a good alternative to Credit Cards?

It gives your customer choices.  Many people may not wish to, or be able to pay the marketing fees on credit card and having a cost effective, easy spread payment alternative makes good financial sense for the cash flow of both you and them.

Real Estate Funders is strictly a short term loan facility to cover a specific invoice.

A Specific Loan for a Specific purpose.

Unlike a credit card, which tends to ‘never end’, this is a specific loan for a specific thing, that finishes and is all paid off…which feels much nicer (and is more financially clever)

MAKING PAYMENTS:

When do I (the real estate agency) get paid?

We pay you 100% in full, 24hours after the customer has confirmed the loan.

When does my Customer make their first payment?

Payments are made by monthly Direct Debit.  The first payment of the $395 setup fee is automatically set to start 3 working days after the date of application.

GENERAL:

Can the same customer have more than one loan with Real Estate Funders at once?

Yes, subject to approval.  If you have more than one invoice owing for the same customer you can fund them together in one lump sum.

How do you treat my Customer?

Rest assured that we treat your customer with the utmost professionalism and respect at all times.  We stake our reputation on it.

THE PROCESS:

What is the process for signing up with Real Estate Funders?

Simply complete and return email our Client Agreement Form.  Your application will be processed within one business day.

** CLICK HERE TO COMPLETE THE APPLICATION FORM **

How much help do we get from you?

As much as you need!  Looking after our Clients is important to us and we go above and beyond to ensure that you have all the help and tools that you need.  We want you to use us….. and we know you’ll only use us if you if it’s really quick and easy for you to do so!

We provide tools and marketing materials to help you including:

  • Agency meeting presentations.
  • Excellent telephone and email support
  • Free Printed Flyers.
  • PDF online versions of flyers.
  • Real Estate Funders Logo to use on your website and paperwork.
  • Quoting software.
  • Simple Application Forms to put in your listing info packs.

What is the process for using you with my Customers?

It’s EASY .. simply complete loan form whilst with your client discussing marketing fees.

This form takes less than 5 minutes to complete. (can be done on paper or electronically)

If paper the email the completed form to us at [email protected] and we’ll handle the rest while keeping informed by automated email of the procedural steps as they happen.

It’s quick / Easy and straight forward and at all stages you are kept fully informed

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