Flexy GST Loan Facility
We’ll fund the GST amount* towards your deposit or renovations.
After settlement, claim GST and repay Flexy.
For GST registered property traders and developers
Example:
Use your GST refund to settle a fix-and-flip project with a 27.5% cash deposit
An $800,000 property is purchased. Below is a loan structure using the Flexy GST Facility and Finbase as the first mortgage lender. Flexy advanced 12.5% of the purchase price which the investor used as cash towards settlement. The investor only needed a 27.5% cash deposit to complete the settlement. After only 30 days, the IRD GST refund was used to repay Flexy, lowering the amount of debt on the project back to $480k.
Purchase Price
$800,000
Finbase
$480k
60%
Flexy
100k
12.5%
Cash
$220k
27.5%
Use our Google Sheets calculator for a quick indication of loan amounts and rates.
%
%
Finance up to 72% of purchase price.
No income statements
We look at LVR, your experience, and the individual deal.
Interest savings
Structure loans to reduce longer-term debt required at settlement.
Single application
Flexy teams up with Finbase, and can organise all lending with one application.
How Flexy Works
Get started
- Send details of your deal before settlement.
01
Quick response
- Flexy will review, and if approved, respond swiftly with a Loan Offer.
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We can usually fund loans within two business days.
02
Settlement day
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On settlement day, Flexy provides funds to your solicitor for a deposit top-up or to your bank account for renovations.
03
Claim GST and repay
- After settling, claim GST on the property purchase with the IRD.
- Use your GST refund to repay the Flexy loan, completing the process seamlessly.
04
Eligibility criteria
The GST Loan Facility is for GST registered property traders and developers.
If you are not GST registered, you can still apply for a renovation loan here.
Have questions or want to get started?
- Funds must be borrowed for investment-related purposes only.
- Borrowers must settle the property into a GST registered entity.
- Flexy cannot be used for zero-rated GST purchases.
- Security over the project, or suitable property required.
- Borrowers must promptly claim GST on the property purchase.
- Borrowers must not have any overdue IRD accounts that could impact the GST refund process.
- If selling another property in the same GST period as the new settlement, the borrower must ensure the GST refund and cash reserves cover the Flexy loan repayment on the due date.
- Full terms and conditions are provided with the loan offer.
Frequently asked questions
What fees are associated with Flexy loans?
There is an establishment fee, legal costs for security registration and AML which are all capitalised into the loan, including the first month’s interest payment. Full costs will be provided on application. You can get a quick indication of fees on our Google Sheets calculator here.
What is the interest rate for Flexy loans?
The current interest rate starts at 1.95% of the outstanding loan balance per month. You can get a quick indication of fees on our Google Sheets calculator here.
How long do borrowers typically have to repay a Flexy loan?
The loan term is 3 months. Most loans are repaid between 30-60 days once the IRD provides the GST refund. The minimum loan term is one month.
Can loan terms be extended beyond three months?
While the maximum loan term is three months, Flexy considers individual circumstances and may work with borrowers to renew the loan, especially in cases involving IRD delays.
What type of security is required for Flexy loans?
Security is in the form of a mortgage, no lesser than second ranking.
Can Flexy loans be used for commercial or only residential properties?
The Flexy GST Facility is for properties subject to GST at 15%. Residential properties typically qualify, but most commercial ones don’t as they are zero rated.
What documentation is required for the loan application process?
We only need the sale and purchase agreement if using the GST Facility.