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General Finance expands from wholesale mortgage funding

Cairns Lockie Ltd subsidiary General Finance Ltd has started taking deposits for a $20 million secured first-ranking debenture stock issue to create a retail fund for its mortgage book.


In its first 3 years most of the first mortgages it has lent have been financed by wholesale funders, which have stood all the risks.


It’s also provided first & 2nd mortgages through a broker network, written over 6- to 12-month periods.


Cairns Lockie has specialised in innovative products for residential borrowers:

No financial mortgages, aimed at the self-employed who are unable to verify their income based on past accounting information, though their current cashflows are satisfactory
Nonconforming mortgages, for borrowers who’ve had “a recent credit mishap, maybe due to a divorce or a business failure,” but with enough income to service the loan
100% home loans, aimed at high-income borrowers who can’t or don’t want to save for a deposit but want to buy a home now
10-year interest-only mortgages, aimed at professional residential property investors, and
2nd mortgages, a variety & customised.

Opening deposit rates are: 6 months 7.75%, 12 months 8.25%, 24 months 9%, 36 months 8.25%, 48-60 months 8%.


General Finance has a limit of 2% of total tangible assets on related-party transactions in any 12-month period, and 10% limit on loans to any one borrower or group of borrowers.


The business is owned by James Lockie & William Cairns. Mr Lockie oversaw the reorganisation of TV3’s corporate restructure & initial public offering then founded Horizon Pacific Television, and is now a director of business magazine publisher Profile Publishing Ltd and chairman of Central Post Operations Ltd, which specialises in TV & commercial post-production. Mr Cairns was an Auckland City councillor for one term but didn’t stand at the October elections, and was mortgage manager for NZ Guardian Trust before starting this business.


Website: General Finance

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