LOAN UPDATE: Equity Release in just 3 Weeks

Scenario:

The Borrowers are a reputable property development company with over 25 years of experience in construction.

The purpose of this loan was to release equity from the Borrower’s Principal Place of Residence in order to reimburse director’s loan.

Security on offer was a waterfront residential property in Tennyson Point, a suburb of Sydney, New South Wales.  The unencumbered property is located on1,617msq of land which comes with five bedrooms, three bathrooms, and 4-vehicle carport.

PMA Solution:

The property developer was unable to satisfy the bank’s servicing requirement due to the nature of their business, where cash is held up while projects are being completed without receiving steady monthly income.

PMA recognised the nuances of their property development business. Therefore, with a strong exit strategy in place to repay the debt from sale of the newly built apartments, PMA was able to fund the loan within 3 weeks.

Details:

Amount: $2,925,000 (First Mortgage)
Property Value: $10,000,000
LVR: 29.25%
Term: 6 months prepaid plus 9 monthly extensions
Broker Commission*: Referrer Fee 0.50% + GST = $14,625 + GST [For brokers only]

*with no clawback