The Borrower had a background in property investment and was seeking urgent funding to complete the purchase of a property in Nowra, NSW.
The property was purchased three years prior with a delayed settlement for $339,000. The property had increased in value to approximately $425,000 in that time.
The Borrower’s Bank was unable to provide finance because of the following reasons:
- They couldn’t demonstrate serviceability
- The Bank couldn’t settle in time
- They had some credit blemishes
- The Bank would have advanced the lesser of contract price or valuation
The vendor was aware of the capital appreciation of the property and had issued a rescission notice to the purchaser confirming that they would terminate the contract unless settlement was finalised immediately. Private Mortgages Australia issued a Letter of Offer to the company on the 10th October which was accepted a day later on the 11th October. Settlement of the loan and the purchase contract was finalised on the 14th October.
The Borrower managed to salvage the purchase contract and subsequently sold the property within a week with approximately $100,000 profit. The loan was repaid in full on the 9th December. The Borrower Group was thrilled with the result and has since used PMA for a subsequent short-term loan.