Zagga’s Secondary Market

Any Zagga investment can be sold, provided it fits within the secondary market rules, including that the loan term is not within two months of the scheduled repayment date, or currently in default. You can choose to list an investment on the secondary market for a maximum period of seven days.

Yes, you can see any amount of your investment, from $1,000 up to the full commitment amount. This means, if you have multiple Zagga investments, you could choose to sell a portion of each.

There is a small Break Administration Fee, please enquire for current fees.

If no new investors fulfil your investment break amount, then you are still subject to remain in the loan for the rest of the loan duration. At this stage, you can choose to extend your listing, provided there are no other investors in the queue waiting to sell.

You can choose to take the amount of commitment already obtained. Your break administration fee will be based on the actual amount sold. Alternatively, as long as no other investor is in the queue (see FAQ below), you can choose to extend your listing by either 3 or 7 days.

Yes, but not at the same time. If while a loan is being listed as a secondary market loan another investor in that loan also attempts to sell a piece of the loan they will be put into the queue. This will be made evident by virtue of the listing dates of the new selling investor choosing 3 days or 7 days from the closing date of the current selling investor. If a third investor then also attempted to sell part of the same loan, they would be provided with dates 3 or 7 days behind the closing date of the second selling investor, and so on.

No, the original terms agreed to as part of the investment commitment will remain the same, including the interest rate and the underlying security. The only features of the loan which are subject to change on the secondary market are the remaining time left on the term of the loan and possibly the LVR, depending on the loan type (i.e. for construction loans, the LVR often decreased during the course of the loan depending on construction progress, therefore increasing the security).

Once a secondary market loan has been purchased, the purchasing investor(s) will be directed to make their investment transfer to the Magna Trust Company Limited’s Commercial Trust Account. These will then be transferred to you as the selling investor, and you will be removed from the loan pool.

Please note, your break fee will be deducted, therefore you will receive in your account your investment sold less your allocated break fee

Investors may choose to purchase loans on the secondary market for a number of reasons, including a lesser loan term, a proven track record of repayments and progress on a loan by the borrower or preferential loan terms (e.g. interest rate) which may not currently be available on a new investment.

Secondary market loans will be clearly displayed on the Zagga website; they will have a different banner colour to original loans and will be marked as a “SECONDARY MARKET”.

In addition to the standard loan disclosure provided by Zagga (i.e. loan summary, loan conditions, details of the security held, borrower’s credit score, loan to value ratio, etc) potential purchasers of existing loans will also be able to view full details of the loan’s performance (i.e. number of repayments, any late payments or other credit events).

Zagga will reassess a loan before listing on the secondary market if we believe the performance of the loan has not been satisfactory. This may include a new credit assessment, which will be made evident on the secondary market listing. If a credit event has been identified but the loan is still deemed creditworthy, this will be made evident upon listing on the secondary market.

Yes, as long as the secondary investment has not been fully funded and it has not reached the end of the listing period (3 or 7 days). It should also be noted that, as with any Zagga investment, a purchasing investor can elect to ‘gazump’ any other potential purchasers, taking the entirety of the loan. You would also then lose your commitment in that investment.