When one door closes, another opens. Whilst other p2p lenders in the NZ market may be reducing opportunities for retail investors, Squirrel are doing quite the opposite.
Squirrel are excited to announce we are making some huge changes to our p2p investing platform that will make it both easier and more accessible for retail investors to get better returns on their money.
In March, Squirrel investors will be able to invest in Kiwis buying property as well as the usual personal loan investment class already available. Given the background to Squirrel with over 10 years experience writing over a billion dollars in mortgages each year, this is a natural progression for us into a space we’re very comfortable.
In fact, Squirrel have already funded a number of mortgages that will be made available to our p2p investors via the secondary market once the changes are live in March, creating further opportunities for investors looking to get better returns on their money.
By nature, the borrowers we’ll be funding for a p2p mortgage will carry lower risk than personal loan borrowers, which in turn affects the investor returns. When we launch with the new investor options, we expect interest rate returns to be:
4.0% p.a. (variable rate) for home loans for residential property
5.0% p.a. (variable rate) for business property loans for small developments or property investments
6.0% - 7.0% p.a. (fixed rates) for personal loans investment classes
With the new investment classes becoming available, Squirrel are aiming to be able to match investment orders on these classes as they come in without delays, which is great news for investors especially in light of recent news with another p2p lender closing its doors to retail investment.
* Past performance is not a guarantee of future performance.