There’s a lot of conversations being had about the effects of COVID-19 on the property and finance industries so Private Mortgages Australia thought we’d provide a quick update on what is happening within our business.
Director Tony Barbone has put together this short video and there’s more information below:
Business as usual
While a lot of business are moving to remote working this is something that PMA has always done. Therefore, we aren’t having to make changes to our processes or working situations so we are able to carry on as usual.
Small change to LVR and pricing policy
To better place ourselves in the market we have slightly lowered our accepted Loan-to-Value Ratio and have made changes to our pricing policy for Registered First Mortgages (R1M) and Registered Second Mortgages (R2M) as follows:
NOTE: Higher LVRS may be considered on application. Lower LVRs apply for non-major metro areas and will be assessed on a case-by-case basis.
*Standalone security only. All other sectors will require additional security.
The PMA difference
In the current climate we expect funding for other lenders to become more scarce as investors hold onto their cash. However, at PMA we’re different in that we make the lending decision. So once we’ve made an offer that’s it, we don’t then need to scramble to find investors which can often lead to settlement changes and delays.
We’re also backed by a wholesale funder who have committed up to $100M to finance our portfolio of first mortgages. So we’re confident that we’re going to be able to continue to lend and are expecting an uptick in business borrowers who can’t obtain finance elsewhere.
If you have any questions, please get in touch at [email protected] or 1300 856 683.