The Borrower has a background in property investment and owns residential and commercial properties in Mount Martha, Glen Waverley and Brighton East.
The purpose of this loan was an urgent refinance from a major bank. They had all of their properties mortgaged with the bank and cross-collateralised. This had started to cause issues as they had delays in accessing funds and lost out on securing properties they wished to purchase. They planned to slowly restructure their portfolio and removed a property in Kew from the bank.
They were able to obtain bank finance however, they were changing the title from two names to one name and were looking for quick funds to help in the transition. The bank was not able to fit within their time constraints.
The security on offer was a residential property in Kew, an inner suburb of Melbourne. The property is on 921msq land, with three bedrooms and three bathrooms with living area of 360msq.
The exit strategy was to refinance with a bank once the title has been changed from two names to one.
Security Property Valuation: $2,700,000
Loan Amount: $1,650,000 (First mortgage)
LVR: 61.6% ‘as is’ value
Interest Rate: 9.9% 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: 0.75% (plus GST)