The Borrower was presented with an opportunity to invest in a lucrative land subdivision. The opportunity required funds to be invested for a period of 12 months and had an attractive fixed profit guarantee. The only catch was that the opportunity was only available until the end of that week.
The Borrower was unable to obtain traditional bank finance because they could not demonstrate serviceability.
Private Mortgages Australia secured the loan through a Registered First Mortgage over the guarantor’s unencumbered principal place of residence, allowing the company to get access to the funds needed to invest in the urgent opportunity. The loan had a 12 month prepaid term meaning they were not required to make any loan payments along the way because interest was capitalised. This feature worked well for the Borrower because they were able to repay the PMA loan in full once the subdivision opportunity matured and they had received their funds back with the guaranteed profit.