Funding trading

Question from Peishi updated on 9th March 2020:

My wife and I have been investing in property for several years. We mainly buy and hold and have a couple of properties in Auckland. We are now interested in part time property trading to increase cash flow. What’s the best way to fund trading? Bank lender or non-bank lender? Are non-bank lender interest rates significantly higher than bank special rates? We are both working with combined income of over $200,000.



Our expert Kris Pedersen responded:

I need to know more about your position and plans to be able to advise correctly. You have a good combined income so there is a strong chance you may be able to bank fund. However, with a tighter bank market, we are non-bank funding a lot more traders these days. Non-bank costs vary greatly depending on your position, the percentage of deposit you can put into a deal and how long you are wanting the funds for. You will also find difference in costs often if you are looking to do a basic cosmetic renovation versus more of an actual construction / development project. If we can assist further please don't hesitate to get in touch at

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

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