How a Broker Earned $47K from a $1.7M Property Purchase Loan
Scenario
The Borrowers have backgrounds in property development and have completed multiple projects in Tasmania.
The purpose of this loan is to complete the purchase of another investment property in Devonport, a city on the Northwest Coast of Tasmania.
Security on offer is a 12,000sqm vacant land in Devonport, Tasmania. The borrowers have also offered two additional properties located in Devonport and Perth as extra security.
Why PMA?
The Borrowers can’t get bank finance as they do not meet serviceability requirements of traditional finance providers.
PMA Solution
Borrowers required urgent settlement, they had access to the property once the contract was signed and had begun work on the Development Approval. Banks were not interested. PMA obtained updated valuations and provided funding based on the property valuations.
Details
Loan Amount: $1,710,000 (First Mortgage)
Property Value: $2,850,000
LVR: 60.00%
Term: 3 months prepaid plus 6 monthly extensions
Broker Commission*: 0.75% + GST (Referrer Fee) + 2% + GST (Service Fee) = $47,025 + GST
*with no clawback
Exit
The exit strategy is to sell the DA approved site and repay 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!)
