There’s plenty happening this month, including our next investor webinar, a couple of new lending products and some exciting investment developments in the pipeline.
Upcoming investor webinar: what happens when a loan defaults?
By popular request, our next investor webinar on Tuesday 6 October will take a closer look at what happens when a mortgage-backed loan defaults.
I’ll talk through what a mortgagee sale actually involves, the role Squirrel plays throughout the process and how we work to protect investor capital and returns when things don’t go to plan.
As usual, there’ll be a live Q&A after the presentation, and we’ll record the session and upload it to YouTube shortly afterwards. Pick a time that works for you and register below.
New lending products underway
Our product development workshop is in full swing at the moment, across both sides of the ledger—lending and investing.
We’ve recently launched a new 100% Turnkey Funding product for builders. You can watch our Founder, John Bolton, explain how it works here.
Why are we talking about a lending product in an investor update? Because investors like you are helping make it possible.
The product allows eligible builders to build new homes without having to tie up significant amounts of capital in the land upfront, which is often one of the biggest constraints on getting projects moving.
At first glance, higher leverage might sound like higher risk. But for our Term Investment and Monthly Income Fund investors, we don’t believe that’s the case.
That’s because:
- Your risk profile remains at 80% LVR, the same as it is today.
- The builder must have an end buyer in place, with a deposit paid, before the loan can settle with us. That gives us a clear exit at the end of the build.
- The builder must have Completion Insurance through Master Builders, providing additional protection if the builder is unable to complete the project.
- Reserve fund support remains in place, as it does across our existing lending.
To date, investors have funded, or are part-way through funding, around $300 million of turnkey loans with no defaults, despite being four years into a property downturn.
Builders Terms lending is next
We also have another lending product close to launch, designed to support Builders Terms projects.
These loans allow builders to construct a house on a section without needing to settle the land until the house is complete.
To manage the risk, an agreement sits between the land developer, builder and Squirrel, giving us a caveat over the property title and the ability to settle the land if required.
It’s a structure that’s relatively common in the market, and we’ve worked with MinterEllison to make sure the appropriate protections are in place.
This product requires a small change to our Term Investment Terms and Conditions, which you’ll see from us in the next week or two.
And on the investment side…
We’ve also got some new investment products and features well underway.
I won’t give too much away just yet, but there’s plenty coming over the next six to nine months, with the first release likely to land in October or November this year.
Safe to say, I’m pretty excited about what’s ahead.
Interest rates rise 0.25% from 16 September
A quick reminder that our Term Investment interest rates increase by 0.25% from 16 September 2026, with the increase also flowing through to the Monthly Income Fund.
Markets are also currently pricing in the possibility of further OCR increases before Christmas, following recent geopolitical developments.
We’ll continue to keep a close eye on things and update you as the outlook changes.
I look forward to seeing you at the webinar on 6 October! don’t forget to register!
Questions, comments, ideas?
If there’s something we’re doing well, or something we could do better, I’m always keen to hear it. Just flick me an email at dave@squirrel.co.nz. Thank you for investing with Squirrel.
