Loan book performance
At Squirrel, we believe in transparency and we aim to provide you with all the statistics you need to make informed decisions about investing with us.
Here's our open loan book so you can take a look what's inside. With that said, please note that past performance does not guarantee similar performance in the future.
Platform stats and performance
Loans funded in the last 7 days
All terms
$6,831,499
Home loans - 1 year
$3,005,113
Construction loans - 2 years
$3,810,527
Personal loans - 1 year
$0
Personal loans - 2/3 years
$15,859
Personal loans - 5/7 years
$0
Balances across accounts & investment class
On-call account
$138,159,620
Home Loans
$43,374,990
Construction Loans
$141,622,301
Personal Loans
$8,770,445
Monthly Income Fund (PIE)
$21,727,189
Average time to sell term investments (in days)
Value of term investments sold on secondary market (in $million)
Reserve funds stats and performance
How much is currently stored away in reserves
Home Loans Reserve Fund 1
$323,122
Construction Loans Reserve Fund
$2,593,122
Personal Loans Reserve Fund
$1,124,347
1. The Home Loan Investment Class Reserve Fund includes cash on hand and an overdraft facility of $100,000 provided by Squirrel Money Limited supported by a bank guarantee.
The latest reserve fund performance for all investment types
Home Loans
Active loan book
$43,374,990
Funds available to the Reserve Fund
$323,122
Credit risk ratio 2
0.04
Expected Borrower default rate p.a. 3
0.03%
Borrower reserve levy p.a. 4
0.32%
Construction Loans
Active loan book
$141,622,301
Funds available to the Reserve Fund
$2,593,122
Credit risk ratio 2
3.60
Expected Borrower default rate p.a. 3
0.39%
Borrower reserve levy p.a. 4
0.94%
Personal Loans
Active loan book
$8,770,445
Funds available to the Reserve Fund
$1,124,347
Credit risk ratio 2
12.40
Expected Borrower default rate p.a. 3
0.88%
Borrower reserve levy p.a. 4
0.88%
2. Size of reserve fund compared with expected credit losses in portfolio
3. Squirrel measures the Expected Borrower Default Rate of the Active Loan Book each month. This is a modelled number taking into account the Probabipty Of Default and the Loss Given Default.
4. The weighted average Borrower Reserve Levy is the amount of money being reserved as a percentage of the active loan book each year.
Managed Fund monthly performance
Squirrel Monthly Income Fund
Report 30 September 2024
The Fund's investment objective is to provide an annual return, after fees and before tax, that outperforms the 1 Year New Term Deposit Rate (>$10k) by a margin of 2.00%
1 year fund return
7.54%1p.a.
Fund Performance (net of fees)
| Returns to 30 September 2024 | 1 Month | 3 months | 6 months | 1 year | 2 years p.a. | Since inception p.a. |
|---|---|---|---|---|---|---|
| Squirrel Monthly Income Fund3 | 0.61% | 1.90% | 3.70% | 7.57% | 7.48% | 6.73% |
| Benchmark: 1 Year New Term Deposit Rate ($10k)4 | 0.48% | 1.51% | 3.03% | 6.17% | 5.51% | 4.18% |
| Objective: Benchmark + 2.00% p.a.2 | 0.65% | 2.03% | 4.05% | 8.24% | 8.48% | 7.51% |
1. 1 year fund return as at 31/08/2024. After fees, before tax
2. The Fund's investment objective is to provide an annual return, after fees and before tax, that outperforms the 1 Year New Term Deposit Rate (>$10k) by a margin of 2.00%, effective from 04/09/2023. Prior to this date, the Fund's investment objective was to provide an annual return, after fees and before tax, of 4.00% higher than the RBNZ Official Cash Rate
3. Returns after all fees and expenses. Assumes distributions are reinvested. Investors' tax rates are not taken into account when calculating returns. Past performance is not a reliable indicator of future performance. Distributions are not guaranteed.
4. The Fund's benchmark is the 1 Year New Term Deposit Rate (>$10k), effective from 04/09/2023. Prior to this date, the Fund's benchmark was the RBNZ Official Cash Rate.
Portfolio performance – Home Loans
Home Loan risk grade
We’ve shown the credit risk grade that has been assigned to each loan in the portfolio. The Credit Risk grade is made up of two pieces:
- Quality of the borrower: Each borrower is given a rating of A – E, A being the highest quality. In determining the grade, we take into account things like the borrower’s credit scores, financial position, and financial conduct.
- Quality of the security: Each security (what we hold the first mortgage over) is given a rating from 1 – 5, 1 being the highest quality. In determining the grade, we take into account things like where the property is located, the nature of the property and any dwelling, and a close look at the title of the property.
The Life To Date table includes all Home Loans that Squirrel has written. The Active Loans table shows all loans currently held by investors on the Squirrel platform. The last two tables show the mix by borrower and security risk grade.
Life to date Home Loans by risk grade
| Borrower/Security Risk Grade | A | B | C | D | E | Total | Mix |
|---|---|---|---|---|---|---|---|
| 1 | 12 | 15 | 2 | 0 | 2 | 31 | 23% |
| 2 | 15 | 58 | 11 | 0 | 0 | 84 | 63% |
| 3 | 2 | 10 | 4 | 0 | 0 | 16 | 12% |
| 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0% |
| 5 | 2 | 0 | 0 | 0 | 0 | 2 | 2% |
| Total | 31 | 83 | 17 | 0 | 2 | 133 | 100% |
| Mix | 23% | 62% | 13% | 0% | 2% | 100% | - |
Active Retail Home Loans by risk grade
| Borrower/Security Risk Grade | A | B | C | D | E | Total | Mix |
|---|---|---|---|---|---|---|---|
| 1 | 5 | 0 | 1 | 0 | 0 | 6 | 15% |
| 2 | 5 | 18 | 2 | 0 | 0 | 25 | 63% |
| 3 | 2 | 5 | 2 | 0 | 0 | 9 | 23% |
| 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0% |
| 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0% |
| Total | 12 | 23 | 5 | 0 | 0 | 40 | 100% |
| Mix | 30% | 58% | 13% | 0% | 0% | 100% | - |
Home Loan Arrears, Default, Hardship, and Over term information
The graph on the right shows the number of loans that have fallen into 30 days+ Arrears, Default, Hardship or Over term positions. Note that a 0 outcome means no loans have met these criteria.
Squirrel Home Loan Portfolio
- Arrears greater than 30 days: The borrower has missed a payment and that payment is not made within 30 days of the payment due date.
- Hardship: Loans that have been approved under the loan agreements hardship provisions.
- Default: Loans that have progressed to the point of there not being a reasonable chance of repayment by the borrower, and a mortgagee sale is being progressed.
- Over term: Loan has exceeded its contracted maturity date and is performing. Default interest is accruing.
Life to date Defaults
- The net value of Defaults: $0
- The net write off rate: 0.00%
Portfolio performance – Construction Loans
We've shown the credit risk grade that has been assigned to each loan in the portfolio. The Credit Risk grade is made up of two pieces:
- Quality of the borrower: Each borrower is given a rating of A - E, A being the highest quality. In determining the grade, we take into account things like the borrower's credit scores, financial position, and financial conduct.
- Quality of the security: Each security (what we hold the first mortgage over) is given a rating from 1 - 5, 1 being the highest quality. In determining the grade, we take into account things like where the property is located, the nature of the property and any dwelling, and a close look at the title of the property
The Life To Date table includes all Home Loans that Squirrel has written. The Active Loans table shows all loans currently held by investors on the Squirrel platform. The last two tables show the mix by borrower and security risk grade.
Life to Date Construction Loans by Risk Grade
| Borrower/Security Risk Grade | A | B | C | D | E | Total | Mix |
|---|---|---|---|---|---|---|---|
| 1 | 49 | 35 | 5 | 1 | 0 | 90 | 14% |
| 2 | 63 | 144 | 52 | 2 | 3 | 264 | 42% |
| 3 | 132 | 101 | 29 | 3 | 1 | 266 | 42% |
| 4 | 6 | 2 | 2 | 1 | 0 | 11 | 2% |
| 5 | 5 | 0 | 0 | 0 | 0 | 5 | 1% |
| Total | 255 | 282 | 88 | 7 | 4 | 636 | 100% |
| Mix | 40% | 44% | 14% | 1% | 1% | 100% | - |
Active Retail Home Loans by Risk Grade
| Borrower/Security Risk Grade | A | B | C | D | E | Total | Mix |
|---|---|---|---|---|---|---|---|
| 1 | 6 | 5 | 0 | 0 | 0 | 11 | 6% |
| 2 | 14 | 31 | 0 | 0 | 0 | 45 | 25% |
| 3 | 65 | 41 | 7 | 0 | 0 | 113 | 64% |
| 4 | 2 | 1 | 2 | 1 | 0 | 6 | 3% |
| 5 | 2 | 0 | 0 | 0 | 0 | 2 | 1% |
| Total | 89 | 78 | 9 | 1 | 0 | 177 | 100% |
| Mix | 50% | 44% | 5% | 1% | 0% | 100% | - |
Construction Loans Arrears, Over term, and default information
The graph on the right shows the number of loans that have fallen into 30 days+ Arrears, Default, Hardship or Over term positions. Note that a 0 outcome means no loans have met these criteria.
Squirrel Construction Loan Portfolio
- Arrears greater than 30 days: The borrower has missed a payment and that payment is not made within 30 days of the payment due date.
- Hardship: Loans that have been approved under the loan agreements hardship provisions.
- Default: Loans that have progressed to the point of there not being a reasonable chance of repayment by the borrower, and a mortgagee sale is being progressed.
- Over term: Loan has exceeded its contracted maturity date and is performing. Default interest is accruing.
Life to date Defaults
- The net value of Defaults: $238,953
- The net write off rate: 0.04%
Portfolio performance – Personal Loans
Default rates
The risk of borrower default is one of the most significant risks for Investors in peer‐to‐peer consumer finance loans. Borrower default can occur for a variety of reasons including the borrower falling on hard times, death or serious illness and on occasion unscrupulous behaviour. Broader environmental factors such as recessions etc. can also influence the prevalence of borrower default.
We report a loan as being in default when:
- It is no longer reasonably expected to be paid; and
- It is no longer reported to investor(s) as due to them.
Once a loan gets to this stage, it is written off with the outstanding interest and principal repaid to the investor(s) in that loan via the Reserve Fund (so long as there are sufficient funds available in the Reserve Fund). Our debt collection processes will continue, usually via an external debt collection agency and may involve legal action, to seek a recovery on the written off amount from the borrower. Any recoveries made are paid into the Reserve Fund.
The values and rates shown in the tables and charts below are the life‐to‐date values as at 30 June 2024.
Personal Loan origination, default and arrears statistics by risk grade
Approved borrowers on our Platform are allocated a risk grade based on their strength across our credit criteria. Their risk grade helps determine the level of reserve levy that applies to their loan and therefore contributes to the overall borrower interest rate.
The table below shows the performance of Personal Loans within each risk grade to date:
Life to date Personal Loans by risk grade
| Risk Grade | A | B | C | D | E | Total |
|---|---|---|---|---|---|---|
| Number of loans originated | 806 | 1,420 | 977 | 221 | 39 | 3,463 |
| Value of loans originated | 25,157,587 | 35,145,940 | 16,979,885 | 2,847,109 | 814,296 | 80,944,817 |
| Number of active loans 1 | 126 | 115 | 55 | 5 | 3 | 304 |
| Current balance of active loans | 3,893,146 | 3,857,033 | 1,425,740 | 101,908 | 132,513 | 9,410,340 |
| Number of loans in default | 5 | 29 | 63 | 21 | 4 | 122 |
| Value of loans in default | (102,916) | (348,483) | (598,894) | (143,307) | (19,575) | (1,213,174) |
| Recoveries on loans in default | 34,413 | 36,114 | 143,685 | 38,392 | 11,473 | 264,078 |
| Gross default rate | 0.4% | 1.0% | 3.5% | 5.0% | 2.4% | 1.5% |
| Net default rate (after recoveries) | 0.3% | 0.9% | 2.7% | 3.7% | 1.0% | 1.2% |
| Number of loans in arrears 1 | 2 | 2 | 7 | 1 | 2 | 14 |
| Value of loans in arrears 1 | 26,331 | 60,786 | 91,914 | 8,092 | 119,340 | 306,464 |
| Arrears rate 1 | 0.7% | 1.6% | 6.4% | 7.9% | 90.1% | 3.3% |
Personal Loan origination, default and arrears statistics by secured and unsecured
Personal Loans made via our Platform may be secured or unsecured (depending on product and loan value). Secured Loans are secured over an asset which provides some opportunity for recovery in the case of borrower default. Any security provided by the borrower will be held by the Squirrel P2P Trustee in accordance with the terms of the borrower agreement and the loan agreement. Where the loan is covered by a Reserve Fund, the security is taken for the benefit of the Squirrel P2P lending platform and the Reserve Fund and not for any investor individually.
Life to Date Personal Loan Performance
| Description | Secured | Unsecured | Total | % Secured |
|---|---|---|---|---|
| Number of loans originated | 1,657 | 1,806 | 3,463 | 48% |
| Value of loans originated | 58,646,480 | 22,298,337 | 80,944,817 | 72% |
| Number of active loans | 236 | 68 | 304 | 78% |
| Current balance of active loans | 8,679,713 | 730,627 | 9,410,340 | 92% |
| Number of loans in default | 33 | 89 | 122 | 27% |
| Value of loans in default | (491,873) | (721,302) | (1,213,174) | 41% |
| Recoveries on loans in default | 114,457 | 149,621 | 264,078 | 43% |
| Gross default rate | 0.8% | 3.2% | 1.5% | n/a |
| Net default rate (after recoveries) | 0.6% | 2.6% | 1.2% | n/a |
| Number of loans in arrears1 | 9 | 5 | 14 | 64% |
| Value of loans in arrears1 | 284,320 | 22,144 | 306,464 | 93% |
| Arrears rate1 | 3.3% | 3.0% | 3.3% | n/a |
Gross default rate by Personal Loan cohort
Track's the development of the gross default rate (i.e. excluding recoveries) for each Personal Loan cohort over time.
The table below contains the loan volumes and default and arrears statistics for each of our Personal Loan cohorts:
| Loan cohort | Loans originated | Active balance | Loan defaults | Default recoveries | Gross default rate | Net default rate | Loans in arrears | Arrears rate |
|---|---|---|---|---|---|---|---|---|
| 2015-H2 | 863,880 | - | (20,708) | 5,324 | 2.4% | 1.8% | - | 0.0% |
| 2016-H1 | 3,221,383 | - | (167,544) | 18,428 | 5.2% | 4.6% | - | 0.0% |
| 2016-H2 | 3,433,480 | - | (76,954) | 18,706 | 2.2% | 1.7% | - | 0.0% |
| 2017-H1 | 4,728,775 | - | (112,395) | 30,971 | 2.4% | 1.7% | - | 0.0% |
| 2017-H2 | 6,584,837 | 16,812 | (344,344) | 100,662 | 5.2% | 3.7% | (16,812) | 100.0% |
| 2018-H1 | 5,072,708 | - | (48,599) | 17,025 | 1.0% | 0.6% | - | 0.0% |
| 2018-H2 | 5,260,814 | 3,525 | (55,743) | 13,419 | 1.1% | 0.8% | - | 0.0% |
| 2019-H1 | 4,941,616 | 25,791 | (99,151) | 19,145 | 2.0% | 1.6% | - | 0.0% |
| 2019-H2 | 6,786,417 | 153,048 | (58,040) | 11,782 | 0.9% | 0.7% | (22,410) | 14.6% |
| 2020-H1 | 5,644,925 | 432,714 | (59,176) | 13,470 | 1.0% | 0.8% | (34,515) | 8.0% |
| 2020-H2 | 6,359,449 | 394,252 | (113,909) | 15,147 | 1.8% | 1.6% | (51,642) | 13.1% |
| 2021-H1 | 4,724,447 | 434,035 | (1,504) | - | 0.0% | 0.0% | - | 0.0% |
| 2021-H2 | 5,097,908 | 677,713 | (3,560) | - | 0.1% | 0.1% | - | 0.0% |
| 2022-H1 | 5,145,796 | 1,235,060 | - | - | 0.0% | 0.0% | (61,744) | 5.0% |
| 2022-H2 | 5,287,256 | 1,713,826 | (51,548) | - | 1.0% | 1.0% | (44,727) | 2.6% |
| 2023-H1 | 3,010,236 | 1,379,364 | - | - | 0.0% | 0.0% | (74,614) | 5.4% |
| 2023-H2 | 2,633,739 | 1,305,508 | - | - | 0.0% | 0.0% | - | 0.0% |
| 2024-H1 | 1,683,259 | 1,235,414 | - | - | 0.0% | 0.0% | - | 0.0% |
| 2024-H2 | 463,893 | 403,278 | - | - | 0.0% | 0.0% | - | 0.0% |
| Total | 80,480,925 | 9,007,062 | (1,213,174) | 264,078 | 1.5% | 1.2% | (306,464) | 3.4% |
The Reserve Funds help protect against defaults
A Reserve Fund has been put in place for each Investment Class to help protect your investment in the event of a late borrower repayment or borrower default. It is funded by applying a reserve levy to the borrower repayment which is aligned to their risk grade and corresponding probability of default.
Whilst the Reserve Fund has ensured that all investor principal and interest due has been repaid in full to date, the Reserve Fund is not an insurance product and we cannot guarantee or warrant that it will have sufficient funds available to enable you to be compensated in event of late borrower repayment or borrower default.
For further detail about how the Reserve Funds operate, including what would happen if a Reserve Fund was depleted, click here.
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