How PMA helped this borrower with a short-term renovation loan
Scenario
The Borrowers have backgrounds running a business that provides small renovation services to clients in Western Australia.
The purpose of this loan is to complete the purchase of a new investment property in northern suburb of Mandurah, Western Australia.
Security on offer is a residential property in Meadow Springs, WA, residential property in Falcon, WA, and a residential property in Silver Sands, WA.
Why PMA?
The Borrowers can’t get bank finance as they do not meet serviceability requirements of traditional finance providers.
PMA Solution
Borrowers were seeking a No Doc loan, for a short term. PMA was able to meet both requirements.
Details
Loan Amount: $408,750 (First Mortgage) $376,600 (Second Mortgage)
Property Value: $2,170,000
LVR: 74.87%
Term: 4 months prepaid plus 2 monthly extensions
Broker Commission*: Referrer Fee 1% + GST = $8,638.85 Service Fee 0.90% + GST = $7,774.95 Total = $16,413.80
*with no clawback
Exit
The exit strategy is to sell the property once refurbished to repay the debt.
Ready to discover how PMA can help provide finance solutions for your business (or your client's business)? Submit a scenario now and we'll get in touch (4-business hours response time guaranteed!)
