What are the charges for borrowing?
Credit Contracts and Consumer Finance Act 2003 (‘CCCFA’)
The CCCFA was not drafted with a Managed Investment Scheme structure in mind. At this stage, Obsidian Group Limited is not lending to individual borrowers unless they are able to provide an independent declaration confirming they are using the funds for business purposes and not for personal use.
The following table discloses the fees charged by Obsidian Group Limited to clients when applying for and obtaining a loan subject to this legislation.
CCCFA Loan Fee Classification |
Amount to be charged |
Credit Reports |
$17.35 per report for each individual (GST exclusive). |
Government Valuation Requests |
$3.25 per valuation request (GST exclusive). |
Mileage (Client interviews & property inspections) |
IRD published mileage rate that applies from time to time. Currently $0.72 cents per kilometre. |
Accommodation & Meals (Client interviews & property inspections) |
Actual cost of any accommodation and meals incurred as a direct result of the CCCFA loan application process. |
Rental Car & Petrol (Client interviews & property inspections) |
Actual cost of the rental vehicle and petrol incurred as a direct result of the CCCFA loan application process. |
Air Fares (Client interviews & property inspections) |
Actual cost of air fares incurred as a direct result of the CCCFA loan application process. |
Time Recovery (Client interviews & property inspections) |
Time spent by Directors, Management and/or staff at their actual hourly salary rate. |
Time recovery – Loans Committee approval processing |
Time spent by Management & Staff at their actual hourly salary rate. |
Time Recovery – Loan Application processing |
Hours taken by Management & staff at their individual hourly rate. |
Broker Fees |
Typically 1% of the sum borrowed. |
Loan establishment Fee | Typically 1% of the sum borrowed (plus GST, if any). |