Why invest in Southern Cross Building Society?

• The Society has a guarantee under the New Zealand deposit guarantee scheme until 12 October 2010.  The Society may opt into the proposed guarantee extension scheme which terminates on 31 December 2011.
• The Society has a "BB" long term credit rating from Standard & Poors and was the first building society in New Zealand to be awarded a credit rating from Standard & Poors.
• The Society is governed by separate regulation, namely the Building Societies Act 1965.  It is not a finance company. 
• The Society is a New Zealand building society i.e. it is substantially owned by, takes deposits from and lends to New Zealanders.
• The Society is the third largest building society in New Zealand with total assets as at 30 June 2009 of $412 million, total liabilities of $360 million and equity of $52 million.
• The Society offers competitive deposit rates relative to other building societies and banks
• The Society is a community focused organisation - supporting your community directly through its business of lending but also through its sponsorship programme carried out by the Southern Cross Building Society Charitable Trust
• The Society is a member of the Financial Services Federation and New Zealand Savings Institutions Association.
  

What is a Building Society?

• A financial institution that pays interest to people who deposit money in savings accounts and lends money to people buying or improving property. Building societies were traditionally non-profit making, having no shareholders. Today, most offer a similar range of services to that of banks.
  

What business is Southern Cross Building Society in?

• The Society borrows from the public and invests only in what it considers to be good quality properties on a first mortgage only basis.
• The Society maintains conservative lending policies i.e. average "loan to value" ratio across its loan portfolio is less than 60% as at 30 June 2009.
  
  

Why make a deposit with Southern Cross Building Society?

• The Society has a strong asset base with net assets of over $52 million as at 30 June 2009 - giving it one of the highest "capital adequacy" ratios of all non bank lenders (see below "why is capital adequacy important?")
• As at 30 June 2009, The Society had a "liquidity ratio" (per its Trust Deed defined as qualifying liquid assets as a percentage of total tangible assets minus equity) of approximately 32% - this compares to a liquidity ratio requirement of 15% per its Trust Deed
• The Society's deposits are governed by an independent trustee, Trustees Executors Limited, established over 100 years ago and a widely-used and respected trustee company within the building society sector
• The Society is independently audited by Deloitte in addition to The Society having its own internal audit manager.
  
  

Why is capital adequacy important?

• The term "capital adequacy" represents the  measure of permanent capital in the Society relative to the Society's total assets - a high capital adequacy ratio reflects a large capital "buffer" in the business.
• The Reserve Bank of New Zealand is expected to soon announce minimum levels of capital required for all non-bank deposit-taking institutions. The Society expects its capital adequacy position to exceed the minimum requirement of 8% indicated by the Reserve Bank.
  

Does Southern Cross Building Society have a credit rating?

• Yes, in August 2009 the Society received a "BB" (with stable outlook) long term credit rating from Standard & Poors.

  
  

Why is Southern Cross Building Society able to offer higher rates of interest than the banks?

• The Society keeps its business simple and maintains tight control over its costs - thereby enabling it to offer competitive rates to its depositors 

Are there any loans made outside of New Zealand?

• No, all our loans and deposits are acquired only in New Zealand.
  

Does The Society lend money unsecured?

• No, all our loans are predominantly secured by first mortgages on local New Zealand properties with a maximum loan to value ratio of 80%. This means we do not loan 100%, nor do we loan money without property as the security.
  

Is Southern Cross Building Society associated with Southern Cross Healthcare?

• No. Although we share a similar name, The Society and Southern Cross Healthcare have absolutely no business association.

What are your trading hours?

• Our branches are open Mon-Fri, 8.30am-5pm except Tuesdays where we are open at 9am. Alternatively you can email your local branch, or submit a contact us request.

How can I open an account?

• You can open your account online, by post or at one of our seven branches or 60+ agencies. 
  To apply online: Print and complete the appropriate application form and send it back to us with your cheque and a certified copy of current identification.
  To apply by post: Phone us on 0800 657 935 and we'll send you an application form and all the information you need to open an account.  Fill in the form and send it back to us with your cheque and certified copy of current identification.
  To apply at a branch or agency: Visit your local branch or agency, with appropriate current identification and we can open the account there and then for you.
  

Why do I need to provide identification, and what type is required?

• To comply with Financial Transactions Reporting Act 1996, we require identification. Original copies of current identification must be sighted, unless otherwise stated.  Examples of identification are:
  • NZ drivers licence
  • Passport
  • Photo Credit Card
  • Student photo-identification card
• If The Society cannot view the original document(s), such as in the case of opening an account via the post, we need a certified copy. A Justice of the Peace, Lawyer, Banker, Doctor, Accountant or Minister of Religion may certify this.  The person undertaking the certification must be contactable by The Society either by telephone or writing. Please ensure the correct contact details are stated on the identification.  When certifying a document, the following wording must be used: "I certify that this is a true copy of the original".
  
  

How do I change my address and contact details for my account?

• We will need notification of change of address in writing to your branch.  We will change your contact details on all of our records and send confirmation if requested.
  
  

Can I make lump sum repayments on my Society Home Loan without incurring fees?

• Yes, you can make lump sum repayments at any time.
• Applies to owner occupied home loans for the value of $100,000 or more. Minimum lump sum repayment is $1000.00. Lump sum payments attract no penalties, unless the mortgage is discharged or reduced to a balance of less then $20,000.00, in which case a $150 fee will apply and  interest adjustment calculations will apply in accordance with the Credit Contracts and Consumer Finance Act 2003.
  
  

Can I ask for an account balance over the phone?

• If you would like to be able to receive your account balance or other information over the phone, you will need to set up a password on your account. Please contact your branch for more information on how to do this. 
  
  

Can I operate my account on the Internet?

• Yes, refer to Internet Banking. 
  
  

How can I make deposits and withdrawals?

• You can make deposits and withdrawals in person at a branch or agency using your passbook. No withdrawals on a Current Account Saver or Maxi-Month Account are permitted without a passbook or appropriate identification. You can also direct credit funds into your Society account from your trading bank account.  Our Telephone Banking and Internet Banking services provide you with the facility to transfer funds to any nominated financial institution.
  
  

What happens if my passbook is lost or stolen?

• You must contact your branch to inform us so that we can register your passbook as lost or stolen. A warning is placed on your account prohibiting any withdrawals to be made until the lost passbook form is completed and received by your branch and a duplicate passbook is issued. Contact your local branch on 0800 657 935.

Is Southern Cross Building Society covered by the New Zealand Deposit Guarantee Scheme?

• The Society has a guarantee under the New Zealand Deposit Guarantee Scheme.  For more information click here.