Invest with DFNZ
Smart & Secure Investment Opportunities
At DFNZ we provide wholesale investors with access to investment opportunities that offer first mortgage security and interest returns of 6-7% per annum. We invest our money only in first mortgages over selected New Zealand properties. DFNZ has a track record of success and delivering strong returns for investors.
DFNZ does not undertake regulated offers under the Financial Markets Conduct Act 2013. Accordingly, no product disclosure statement is prepared in respect of these investment opportunities. Only persons who qualify as wholesale or eligible investors may invest.
- First mortgages only
- Locations across New Zealand
- Your funds run through solicitor’s trust account
- Quarterly interest
- Interest returns 6-7% per annum
- Combined finance, property and construction expertise
- You choose specific loans to invest in
- New Zealand investors only
- We never lend money to ourselves
How it works
If you qualify as an investor, we will send you lending proposals as suitable projects come available.
You choose to invest on a project-by project-basis – new projects emerging constantly.
Deposit and repayment of your funds is always via our solicitor’s trust account.
DFNZ manages your investment and pays quarterly interest into your nominated account.
DFNZ’s specialist team has decades of experience in the New Zealand property development marketplace. We are experts at identifying, managing and mitigating risk to protect your funds.LEARN MORE
What type of investor can invest with DFNZ?
DFNZ can only offer investment products to either Wholesale Investors or Eligible Investors as defined by the Financial Markets Conduct Act 2013, and not to Retail Investors.
What information will I see?
- DFNZ will provide you with an Information Memorandum outlining the key parameters of an investment, together with any other relevant documentation.
- We will also provide any information that we consider is relevant to assist you to make an investment decision.
- This will include the borrower’s name and a registered valuation of the property, which will be provided once you have signed a confidentiality agreement.
What is the minimum investment?
Is DFNZ a registered Financial Service Provider?
Yes, if you would like to check the Financial Service Providers Register our registration number is FSP676291:
Do I have to comply with Anti Money Laundering (AML) and Countering Financing of Terrorism (CFT) regulations?
- All of our borrowers and investors have to comply with the AML/CFT Act 2009. We outsource our AML compliance to First AML who will confirm your identity and advise what other information may be required.
- The AML/CFT Act 2009 (The Act) came into effect on 30 June 2013 and DFNZ is legally required to confirm the identity of its Investors and Borrowers. We need to collect information on Individuals, Companies, Trusts and Partnerships. We will also need to determine the Source of Wealth for a Trust.
Can you help me choose my investment?
This decision is yours to make. We can help explain any procedural matters that are unclear to you, but we cannot provide you with any advice or guidance in respect to individual loans or to your wider investment strategy. If this is required, we would urge you to speak to a suitably qualified Financial Advisor.
What kind of entity can invest?
We are happy for you to invest through any legal entity, provided that full disclosure of all parties is made, that all of the appropriate documentation is supplied, and that the entity is a Wholesale or Eligible Investor which is compliant with all applicable regulatory requirements.
How does the security structure work?
DFNZ will, as agent, and on behalf of the investors in a loan hold a mortgage over the property of the borrower. DFNZ and the investors enter into an Investor Facility Agreement which deals with the making of the investment, the management of that loan and the mortgage security. These funds cannot be used for any purpose other than the making of that loan. All securities and documentation are prepared and checked by our solicitors who also ensure that the mortgage is registered.
Does DFNZ provide investment advice?
No. You should seek your own independent financial advice before deciding to proceed with a first mortgage investment.
Are there any risks?
Like any investment there are risks. We have measures in place to manage what we believe to be the risks with this type of investment, they are outlined here.
Can I get my money back before maturity?
Your investment is for the life of the loan and locked in until the loan repays.
What happens if the borrower does not make their monthly interest payments?
- DFNZ will deal directly with the borrower in an effort to sort out the problem. We have a lot of experience with this, and a range of strategies that we employ.
- In the event a borrower continues to miss interest payments, we will take all necessary steps including the sale of property to recover your investment.
Does DFNZ or its directors invest in any of the mortgages?
Yes, DFNZ’s directors and family co-invest in specific loans alongside our other investors.
How do I invest?
You will need to complete our simple Application Form which lets us know who you are, where you live, and how to get hold of you. There is also a more detailed financial information form that we need completed, which is necessary to meet the AML/CFT legislative requirements that we operate under. Just send that to us, with ID and proof of address and we will be in touch.
Are properties insured and are rates paid?
- As part of the loan drawdown process, we will receive evidence that properties are insured and that our interest is noted on those policies.
- We receive confirmation that rates are paid to date when we provide a loan, but this does not mean that the borrower will continue to meet their rate payments. The Local Government Act gives the councils authority to claim unpaid rates from Mortgagees, so at times we receive these rate demands.
Is there tax on my investment?
- DFNZ is registered for Resident Withholding Tax (RWT) and will deduct RWT from your interest payments.
- If you would like to be paid gross interest, you will need to provide a RWT exemption from the IRD.
If the borrower is a company do the shareholders provide personal guarantees?
Yes, DFNZ loans are always secured by personal guarantees.