Duplex Construction Completion Finance Allowed Builder to Finalise Development
Scenario
The Borrower is a licensed registered builder based on the NSW mid-north coast, specialising in residential new builds and renovations.
The purpose of this loan was to refinance an existing loan and provide additional funds for the construction of a duplex on the security property.
The security offered was a residential property on 635m² of land, comprising four bedrooms, two bathrooms and a double lock-up garage.
Why PMA?
The Borrower was unable to secure traditional bank finance, as their financials had not yet been prepared.
PMA Solution
Despite the borrower having already commenced construction, PMA provided a construction loan, something a bank would have been unlikely to do, which allowed the client to complete construction of the duplex.
Details
Amount: $957,951 (First Mortgage)
Property Value: $1,475,000
LVR: 64.99%
Term: 12 months prepaid plus 4 monthly extensions
Broker Commission*: Referral Fee – $10,533.50
*with no clawback
Exit
The exit strategy was to complete the duplex and sell the property to repay the loan.
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