Duplex development able to be completed thanks to second mortgage from PMA
Scenario
The Borrowers have a solid track record in property development, having successfully delivered several comparable projects in recent years.
This loan was provided to supply additional funding to finalise their duplex development project in Melbourne, Victoria.
The security offered comprised two residential properties in Campbellfield. The first property sits on 344 m² and includes a three-bedroom home with two bathrooms, two living areas, two dining areas, a lock-up garage and a carport. The second property sits on 538 m² and features a four-bedroom home with three and a half bathrooms, two living areas, a lock-up garage and a carport with capacity for five vehicles.
Why PMA?
The Borrowers were unable to access traditional bank finance due to the non-standard structure of capitalised interest, prompting them to seek a more flexible lending solution.
PMA Solution
PMA was able to provide second mortgages against two properties to assist with the completion of the duplex development.
Details
Loan Amount: $545,200 (Second Mortgage)
Property Value: $1,275,000
LVR: 75.00%
Term: 15 months prepaid plus 3 monthly extensions
Broker Commission*: Service Fee of 1.00% + GST = $5,254.50
Referrer Fee of 1.00% + GST = $5,254.50
*with no clawback
Exit
The intended exit is the sale of the completed duplex to fully repay the facility.
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