tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, March 28th, 10:13PM

Investments

rss
Latest Headlines

Canterbury Mortgage halts withdrawals as reserves dwindle

Canterbury Mortgage Finance suspended withdrawals until at least March next year after an "unprecedented" number of requests for withdrawals.

Tuesday, July 22nd 2008, 12:49PM

by Jonathan Underhill

"If the level of withdrawal requests had continued, then our cash reserves would soon be insufficient," trust spokesman Don McBeath said in a statement.

The NZ$250 million fund still plans to make its quarterly interest payment due on October 1, though "it is likely the return will be less than we have previously been able to pay."

Canterbury Mortgage, started nine years ago, typically holds cash equivalent to 5% to 10% of the value of the fund, with most of its investors' money in about 300 mainly short-term loans secured by first mortgages.

The failure of high-profile finance companies had eroded confidence in the sector and probably contributed to the increase in withdrawal requests, the company said.

« Cymbis Australia misses repaymentsRegional mortgage managers upbeat despite CMT suspension »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com