PMA Assists Horse Stud Owners to Refinance an Existing Loan

Scenario

The Borrowers have backgrounds as seasoned property investors.

The purpose of this loan is to refinance an existing loan.

Security on offer is a rural property situated on 38.71 hectares of land, featuring a four-bedroom brick homestead equipped with extensive equine infrastructure, including a modern barn with 10 boxes, a covered round yard, workshop, feed room, silo, and other farm improvements. The land comprises around 24 horse paddocks, each with a dedicated water supply and accessible via an internal laneway system. The property is currently operated as a thoroughbred breeding and agistment facility.

The Borrowers have offered another rural property as additional security. Situated on 2.6 hectares, the property features a double-storey home with four bedrooms and three bathrooms. Additional improvements include a detached double garage, a large hay shed, and a machinery shed.

Why PMA?

The Borrowers could not get bank finance as their financials are not yet prepared.

PMA Solution 

PMA obtained sworn valuations and completed the refinance. PMA does not require financials or an accountant’s letter to confirm servicing capacity.

Details

Loan Amount: $1,573,500 (First Mortgage)

Property Value: $2,510,000

LVR: 62.69%

Term: 9 months prepaid plus 3 monthly extensions

Broker Commission*: Broker collected via signed mandate 1.65% + GST = $28,559 in addition to the referrer fee PMA paid 0.75% + GST = $12,981. Total $41,540

*with no clawback

Exit

The exit strategy was to sell the first secured property to repay the debt.