Schedule of Rates and Fees

RATES AND FEES

INTEREST RATES

Alternate Finance provides loans at an annual interest rate from 13.95% to 26.98% per annum.

The rate that applies to your loan will be based on a range of factors including your circumstances, credit history with us or others, the security you can provide and the loan amount.

Once set, our interest rate is fixed for the term of your loan.

DEFAULT INTEREST RATE

If you get behind in your loan repayments, then we may charge a default interest rate on any overdue loan payments, while they are unpaid. The Default rate that we charge is 10% per annum above the Interest Rate that normally applies to your loan.

LOAN TERMS

Loan terms are normally over a maximum term of three years.

CREDIT FEES

Establishment Fee

A contribution towards the cost of assessing and processing approved loan applications.

Loan AmountEstablishment Fee
$0.00 to $499.00$95.00
$500.00 to $1,000.00$230.00
$1,001.00 to 1,999.00$290.00
$2,000.00 to $4,999.00$340.00
$5,000.00 to $7,499.00$390.00
$7,500.00 to 11,999.00$490.00
$12,000.00 to $24,999.00$590.00
$25,000.00 to $39,999.00$690.00
$40,000.00 to $49,999.00$790.00
$50,000.00 to $79,999.00$870.00
$80,000.00+$1,090.00

Fees are calculated based on the complexity of loans and only on the NEW money component.
The fee is then determined by reference to the bands as shown. i.e. there is no fee for any refinance portion of an existing loan from Alternate Finance.

REGISTRATION FEES

The actual charges incurred for registration of:

ItemFeeExplanation
PPSR Registration (Manual)$20.00Financing Statement completed through PPSR Website (or renewals).
PPSR Registration (Automatic)$10.00Financing Statement completed through PPSR BtoG link (or renewals).
LINZ Registration – Mortgage$187.70*Mortgages using E-Dealing through a 3rd party.
LINZ Registration – Caveat$192.70*Caveats using E-Dealing through a 3rd party.
LINZ Discharge – Mortgage or Caveat$187.70*Using E-Dealing through a 3rd party.

*These charges vary depending on the 3rd party. Fees displayed are the current fee levied by our primary third party conveyancer.

ADMINISTRATION FEE

A contribution towards the costs of ongoing maintenance/processing of a loan.

ItemFeeExplanation
Administration Fee$6.00A monthly charge included in the instalments required to repay the loan.

VARIATION FEE

A contribution towards the cost of assessing and undertaking formal contract variation.

ItemFeeExplanation
Variation Fee$50.00Where an existing loan’s terms are changed, e.g. security, parties, or repayment requirements.

FULL PREPAYMENT FEE

A contribution towards the costs associated with full early prepayment of loans.

ItemFeeExplanation
Administration Costs Charge$110.00Where you repay a loan in full before the final payment is due.
Prepayment ChargeAs CalculatedCompensation for any loss we may incur calculated under the formula prescribed in regulations.

DEFAULT FEES

OVERDUE ACCOUNT NOTICES

A contribution towards costs associated with management of loans in default.

ItemFeeExplanation
Arrears Letters$20.00*Where your loan is overdue through missed payment(s).
Unpaid Item Letter$12.00*Letter issued advising that a payment made by you has been reversed by your bank.
Final Warning Letter$30.00*Where repossession or legal action may follow, or a payment default may be listed against you.

*Where a notice is sent to more than one person (e.g. if there is more than one borrower and/or guarantor) only one fee is charged, not one fee per person.

DEFAULT INTEREST CHARGES

In the event of a default in payment and while the default continues you must pay the default interest charges. In the event of a breach of the loan agreement or on the enforcement of the loan agreement, the default fees specified below are payable. The loan agreement may allow the creditor to vary these fees and charges.

Default interest is 10% per annum, when charged on any overdue instalment or overdue amount before payment of the unpaid balance has been accelerated (called up early). Default interest is charged from the time that you fall into financial default until you are no longer in financial default. It is calculated by multiplying the overdue instalment or overdue amount by the daily default interest rate. The daily default interest rate is calculated by dividing the annual default interest rate by 365. Default interest is charged to your account each payment period.

If the lender accelerates payment of the unpaid balance or the unpaid balance falls due at the end of the loan term, and you do not pay, the default interest rate will be 10% per annum charged on the unpaid balance from when the unpaid balance is called up or otherwise becomes due until you repay it in full.

ItemFeeItemFee
Arrangement Requested$13.00Insurance Default$26.00
Account in Arrears Admin Fee$25.00Letter Correspondence$10.00
Arrears Letter$20.00Monitoring Fee$14.50
Broken Promise$15.00Phone Call$8.60
Car Searches$14.45Post Possession$32.50
Mobile Phone Call$8.60Further Advance$40.00
Change of Direct Debit$6.50Property Law Notice$265.50
Caveat / MortgageCOSTRefund Charge$16.00
Comment / Diary$6.50Repossession Authority$65.00
Direct Debit Transfer$4.00Repossession FeeCOST
Default Loading Fee$15.00Repossessed Vehicle Sales Fee$500.00
Dishonour Fee$12.00Statement of Account After Sale$26.00
Fifteen Day$25.00Storage (daily)$18.00
Final Notice$30.00Text Message$6.50
Gone No Address$35.00Variation Cost$50.00

AGENT CALLS

A contribution towards costs associated with a physical visit due to default.

ItemFeeExplanation
Field Visit – Alternate Rep$75.00Where we have an employee visit you regarding a default (payment or otherwise).
Field Visit – Third Party AgentAs Invoiced to usWhere we have an contracted third party agent visit you regarding a default (payment or otherwise).

REPOSSESSION

A contribution towards costs associated with repossession action.

ItemFeeExplanation
Repossession Warning Notice$30.00*Statutory Notice formally advising of our intention to repossess.
Repossession FeeAs Invoiced to usWhere we issue an authority to repossess to a contracted third party agent.
Post Repossession Notice$32.50*Statutory Notice confirming the repossession.
Storage of Repossessed Goods – Alternate$8.00 per dayWhere repossessed goods are stored at Alternate Finance’s storage locations.
Storage of Repossessed Goods – OtherAs Invoiced to usWhere repossessed goods are stored at a third party’s storage location.
Return of GoodsAs Invoiced to usCost for return of goods, where this is through Alternate Finance’s warehouse the charge will be $50.
Storage Vehicles$18.00 per dayWhere a storage vehicle is used for repossessing goods.

*Where a notice is sent to more than one person (e.g. if there is more than one borrower and/or guarantor) only one fee is charged, not one fee per person.

RECOVERY

A contribution towards costs associated with other collection or enforcement actions.

ItemFeeExplanation
Collection Agents CommissionAs Invoiced to usWhere a third party debt collection company has been passed the loan to pursue repayment.
Property Law Act Notice$265.00Statutory Notice issued under the Property Law Act requiring payment or other default to be remedied.
Other ChargesAs Invoiced to usAny other services contracted out to third parties to facilitate collection/repayment of a loan.

NOTES:
These are the maximum level of fees charged, in some cases fees may be charged at a lower level.

Last updated: 23 April 2019.

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