Mortgage trusts don’t often make the newspaper financial commentary, so many investors are unaware of what they are and what they offer.

But once people understand how they work and the benefits they provide, the interest is real.

“We find a lot of our business comes through referrals," says Glenys Holden, CEO of Norfolk Mortgage Management Limited, Manager of Norfolk Mortgage Trust.

“When investors see the steady returns we offer, they tell their friends and family.”

Norfolk’s investor base reflects this confidence. Forty percent of their investors have been with them for more than a decade, demonstrating the trust and reliability built over the years. While some investors choose to place significant funds with us—the average investment sits at $155,000 – our mortgage trust is also accessible, with one-third of investments under $50,000 and a minimum entry of just $5,000.

“Our investors come from all walks of life – some are retirees looking for dependable income, others are professionals wanting a hands-off investment, and many are everyday New Zealanders simply looking for a secure place to grow their wealth,” says Glenys.

“The flexibility of our trust allows people to start small, build confidence, and reinvest over time.”

In an unpredictable world, securing your financial future isn’t always about chasing the highest returns – it’s about finding stability. Whether you’re planning for retirement, looking for a passive income source, or seeking a reliable, low-maintenance investment, the key is balancing risk and reward. Norfolk Mortgage Trust provides a proven way to achieve this – earning steady monthly returns while keeping your capital secured by New Zealand property.

What is a Mortgage Trust?

A mortgage trust pools investors funds to provide loans secured by property. This means your investment is backed by real assets rather than being subject to the unpredictable swings of the market.

Here’s how it works

1. Investors contribute funds and receive units in the trust.
2. The mortgage trust carefully selects borrowers who meet strict lending criteria.
3. Approved loans become part of the trust’s diversified mortgage pool.
4. Borrowers pay monthly interest, which is collected by the trust.
5. Investors receive monthly distributions from this interest – minus management fees, costs, and tax.
6. Investor Choice: Investors can choose to receive their monthly returns as cash deposits or reinvest them into the trust to compound their wealth.

If you’re new to mortgage trusts or want to understand how they work, watch Norfolk Mortgage Trust’s explainer video at www.norfolktrust.co.nz/informed. It provides a clear and concise overview of how mortgage trusts operate and why they’re a compelling option for many investors.

The Norfolk difference

Talking with Glenys and the team at Norfolk, it’s clear they take a disciplined, strategic approach to investing. They don’t rely on chance or speculation – every decision is grounded in nearly 20 years of experience, a focus on delivering strong returns, and a firm commitment to protecting investors.

As Stu Smith, executive director at Norfolk, explains, success comes down to three key pillars.

1: Rigorous loan evaluation: choosing the right opportunities Norfolk doesn’t just glance at credit scores. Every borrower undergoes a comprehensive financial assessment to ensure they can meet their obligations. This disciplined selection process helps maintain a portfolio of high-quality, secure loans.

2: Conservative lending practices: putting investor security first

• Every loan is backed by first registered mortgage. This means we have the first claim on the property in the unlikely event of a borrower defaulting.

• Strict Loan-to-Value Ratios (LVRs) create a built-in equity buffer, protecting investor capital.

3. Diversified portfolio: spreading risk for stability Rather than concentrating funds into a few high-risk loans, we diversify investments across a range of borrowers, property types, and locations throughout New Zealand, ensuring consistent performance even in uncertain times.

“When it comes to investment decisions, we err on the side of caution — because safeguarding our investors’ funds is paramount,” says Smith.

Why investors choose Norfolk Mortgage Trust

When investors talk about why they trust Norfolk, five key reasons stand out:

• Proven performance: Since 2006, Norfolk has delivered steady, uninterrupted monthly returns, even through market fluctuations.

• Reliable monthly income: Investors enjoy consistent cash flow rather than waiting on lump-sum payouts or market returns.

• Strong risk management: Conservative lending policies and strict LVRs help protect capital.

• Simplicity and transparency: No complex structures, no hidden fees – just a straightforward investment.

• Personalised service: “We’re not a faceless institution,” says Glenys. “Investors know they can pick up the phone anytime and speak directly with us.”

“Our investors aren’t just account numbers: they’re people with real goals, whether it’s funding their retirement, supporting their family, or planning for a major life milestone. We take that responsibility seriously.”

Mortgage trusts may not always make headlines, but for those in the know, they offer a powerful combination of security, stability, and consistent returns. Norfolk Mortgage Trust has been delivering exactly that for nearly two decades. Over the last decade, Norfolk has delivered an annualised average return of 6.56 per cent after fees and before tax.