The Borrower has a background in property investment and is considered a sophisticated investor.
The purpose of this loan was to provide urgent finance for an investment in the development of a retirement village located at Lake Macquarie in NSW. The mortgagee was about to foreclose and needed urgent equity release to keep the project
Application for bank finance was submitted to NAB and was expected to be approved in due course, however the Borrower wished to proceed with works and was not prepared to wait for bank approval.
PMA was able to turnaround funds in five days so that the investment in the development project could continue.
The security property on offer was a residential unit in Bondi Beach with Owner Estimated Value of $6m.
The Exit Strategy was to refinance with NAB project funding or should this be further delayed then direct refinance of the security property.
Security Property Valuation: $6,000,000
Loan Amount: $2,000,000 (1st mortgage)
Interest Rate: 9.75% p.a.
Term: 3 months prepaid plus 3 monthly extensions
Approval Fee: 2.75% (plus GST)
including Fixed Referrer Fee: 0.75% (plus GST)
Service Fee: Nil
“I found the team at Private Mortgages Australia to be very efficient and responsive with organising a loan process. Even when staff members were on leave, others stepped in and where across all aspects of the set up. We had a short amount of time to put together the deal, and the team were able to get the job done, which prevented financial burden. The communications with myself and external parties was excellent in making the deal happen.”
Luke Moroney – Property Investor, Sydney