Private Mortgages Australia is able to assist with construction finance. In this case the Borrower has a background in property development and has completed several projects in Melbourne.
The Borrower had a previous loan with PMA for the acquisition of land which is now being refinanced for the construction of two townhouses in Altona, Victoria.
They weren’t able to obtain bank finance as they were not able to meet traditional banks’ servicing requirements.
Security on offer was a residential block with land area of 543sqm. The planned development included two townhouses each including four bedrooms, three bathrooms and two car spaces plus quality appliances, glazed windows, alarms and CCTV cameras.
The exit strategy was to sell the properties and extinguish the debt.
Security Property Valuation: $1,980,000
Loan Amount: $1,386,000 (1st mortgage)
LVR: 70% of ‘as if complete’ value (exc. GST)
Interest Rate: 11.95% p.a.
Term: 12 months prepaid plus 3 monthly extensions
Approval Fee: 2.75% (plus GST)
including Fixed Referrer Fee: 0.75% (plus GST)
Service Fee: Nil