FINANCE SOLUTIONS FOR SME CLIENTS

Equity Release

Why use PMA to finance your client’s equity release:

  • They need to quickly access equity in a property for a genuine business purpose
  • They only need funds for a short time and can secure the loan with a first or second mortgage
  • They need liquidity and fast and can’t wait for the banks

Equity Release Loan Terms


Loan Amount

Up to $5M (1st Mortgages) & $2M (2nd Mortgages)

LVR

Up to 75% of the ‘as is’ value (max. LVR of 75% for major metro residential property, other security at lower LVRs)

Security

1st or 2nd Mortgage

Term

3-12 months

Equity Release



By releasing the equity in a property a borrower can increase liquidity for investments, for business purposes such as buying equipment, to improve cash flow, to pay suppliers or to pay off any tax debts. Private Mortgages Australia can provide equity release finance on either a first or second mortgage to allow a borrower to use the finance for a genuine business purpose.

CASE STUDY: Equity Release- Tennyson Point, NSW

The Borrowers have over 25 years of experience in construction and property development and have completed around $20 Million in works over the past few years.

The purpose of this loan is to release equity from the Borrower’s Principal Place of Residence in order to reimburse a director’s loan that was used towards the purchase and construction of development projects in Sydney.

The Borrowers can’t get bank finance as they can’t demonstrate servicing to bank requirements.

Security on offer is a waterfront residential property in Tennyson Point, a suburb of Sydney, New South Wales. The unencumbered property is on 1,617msq land which comes with five bedrooms, three bathrooms, and 4-vehicle carport.

The exit strategy is to either sell a townhouse development in Blackburn due for completion later this year, or sell an apartment project in Auburn due for completion early next year to repay the debt.

This loan has a 6 month pre-paid loan term, with the option for 9 monthly extensions.

Details

Security Property Valuation: $10,000,000

Loan Amount: $2,925,000 (First Mortgage)

LVR: 29.25%

Interest Rate: 11.20%

Term: 6 months prepaid plus 9 monthly extensions

Property Refinance- Kyneton VIC

Ready to discover how PMA can help provide finance solutions for your business (or your client's business)? Submit a scenario now and we'll get in touch (4-business hours response time guaranteed!)

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Lending Process


application

Complete our
Quick App Form


or

Contact Us
and we'll gladly answer any questions you may have.

indicative

After receiving the Application we’ll develop an Indicative Letter of Offer which includes an indicative interest rate.

Once the Offer is accepted a small assessment fee is charged to cover the searches we do in due diligence.

letter

Once we’ve completed our due diligence, we’ll send a formal Letter of Offer. Once signed the loan documents are drawn up and sent to the Borrower’s solicitor.

letter
congrats

Upon return of the fully executed documents the approval fee, legal costs and prepaid interest are deducted from the loan and the balance is paid to the Borrower.

Referrer fees are paid within 24 hours from settlement with no clawbacks.

We endeavor to make this process as quick as possible and can settle within 5 days upon receipt of all outstanding information.

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