How PMA Helped a Borrower Without Equity Secure a Second Mortgage for a Duplex Development

Scenario

The Borrowers have backgrounds in property development.

The purpose of this loan was to secure additional funding to complete the development of a duplex property in Long Jetty, New South Wales.

The security offered was the borrowers   principal place of residence. The property sat on a 972 sqm land and featured five bedrooms, two bathrooms, a spacious living room, a double lock-up garage, and an outdoor swimming pool.

Why PMA?

The Borrowers were unable to obtain further bank financing for the development project due to a lack of remaining equity.

PMA Solution

PMA obtained valuation for the security on offer, obtained Deed of Priority for the

second mortgage from the current bank and released additional equity for the borrower to complete their development project.

Details

Loan Amount: $875,000 (Second Mortgage)

Property Value: $4,400,000

LVR: 74.27%

Term: 12 months prepaid plus 3 monthly extensions

Broker Commission*: Referrer Fee 1% + GST = $9,625   Service Fee 2% + GST = $19,250 
Total = $28,875

*with no clawback

Exit

The exit strategy was to sell the developed property to repay the debt.