Our Lending Philosophy

We work with each client to achieve a bespoke solution.

How We Lend

Each loan we fund is secured by a first ranking mortgage against quality property assets with a recent valuation.

These loans are further supported by:

Detailed due diligence in relation to the experience, financial position and reputation of the borrower and sponsor

A clear and achievable ‘exit strategy’, typically including at least two or three alternative exits

We will consider the following real property asset types:

Australian capital cities as well as in regional areas within 100 kilometres of capital cities. No exposure in Northern Territory or Western Australia

Secured property values generally in the $2 million to $30 million range, where buyer and refinance liquidity is relatively deep

Non-specialised property assets including land with residential use, completed apartments, generic commercial property and construction loans.

We understand that every property transaction is different.

We’re committed to building lasting relationships and providing tailored solutions which turn our partners’ visions into reality.

Risk based interest rates via the credit assessment score

We don’t believe in one size fits all and we don’t believe in all borrowers paying the same rate. Because of this, interest rates differ from borrower to borrower, and loan to loan. We consider the competence, experience and reputation of the borrower, and the underlying sponsor, just as carefully as we do the value of the primary security asset.

The Zagga Credit Assessment Score (CAS) is an alpha + numeric risk-based assessment score assigned to borrowers based on the loan specifics and the information they have provided.

The alphapart of the CAS considers the borrower’s credit history and their expected ability to service the proposed loan.

Lowest risk. Default is considered remote

Low risk. Default is considered highly unlikely

Moderate risk. Default is considered unlikely

Acceptable risk. Default is not anticipated

Possibility of default. Risk features merit close attention and scrutiny

High risk of default in the event of changes in the economic and/or business environment

The numeric part of the CAS considers the loan to security value ratio (LVR).

LVR under 20%

LVR 20% to 34%

LVR 35% to 59%

LVR 60% to 74%

LVR 75% or greater

Let’s have a chat

If you’re ready to experience the Zagga difference,
reach out and have a chat.

Tom Cranfield

Director, Investment & Risk
0424 205 326

Frank Hageali

Director, Property & Risk
0411 206 761

Do you have questions about borrowing through Zagga?

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