How Zagga Works for Brokers
Zagga is a Peer to Peer lending platform, specialising in first mortgage-secured loans.
Our focus is on developing mutually beneficial relationships within the broker network to introduce loans through our broker portal
Zagga operates in assisting with those loan proposals that fall just outside of normal mainstream lending criteria. We are not interested in the loans the banks won’t do, rather the loans the banks can’t do, for a variety of reasons. For many borrowers, Zagga is able to provide initial funding until the client conforms to normal bank lending criteria and can then refinance with a mainstream bank.
We are a small team and operate differently from other similar lenders. We have the flexibility to structure each loan to meet the requirements of the borrower and can provide an answer (yes or no) within an hour of receiving your application and all relevant supporting information. Loans can be fully funded within hours of listing.
Key Points for Brokers
Zagga is not governed by the Reserve Bank’s LVR restrictions (we are able to offer 100% LVR loans).
Zagga does not operate a ‘claw-back’ system on broker initiated deals.
Each borrower is assigned a credit score which is based on the loan to value ratio, and the borrower’s ability to repay the loan. An interest rate and platform fee is then determined by the credit score. Essentially, the lower the LVR and the stronger the serviceability aspect, the lower the interest rate and the platform fee will be.
The maximum term available is 5 years with monthly interest only payments, however our investors have shown a strong preference for shorter term deals (1 – 3 year terms).
Loan product classes include the following (LVR up to 100%):
- Residential, commercial and rural;
- Plant and equipment;
- Business finance
Loan Application Requirements
When uploading a loan application on your client’s behalf, you will be required to upload supporting loan documentation. This can also be sent directly to email@example.com.
The usual documentation is required as follows:
- Evidence of the value of the property being offered as security (registered valuation, rating valuation, etc);
- Your application including Authority to Act;
- Statements of position from each borrower/director;
- Evidence of income available to service the loan;
- 3 months of bank statements
- Any other information that you may consider appropriate (e.g.) Business Plan
When a loan has been assessed and approved, an offer to list the loan is emailed direct to you as the introducing broker for acceptance on your client’s behalf. Upon acceptance, the offer will then be automatically emailed to your client for final acceptance. As soon as your client has accepted, the loan will be automatically listed on the Zagga Platform for funding by registered investors. Until the offer is accepted, no information is available outside of Zagga.
We also encourage you to join and register as an investor. There is absolutely no obligation in doing so and it will serve two useful purposes:
- Will enable you to understand the process, which will in turn help you to assist your clients;
- Will enable you to view full details for all the loans listed on the platform and those loans that have been successfully funded and settled.
We also operate a broker introducer referral scheme whereby we pay brokerage for any investors introduced who successfully fund any loan deals listed on the website. More information on this can be found at www.zagga.co.nz/introduce.
For any questions you have, I encourage you to give me a call to discuss, or fill in the call back form and I’ll be in touch.
General manager, Credit Risk
027 478 0326