PMA delivered Fast-Track Refinancing to Secure $400K in Released Equity

Scenario

The borrowers, experienced in property development, needed a finance solution that went beyond what traditional lenders could offer. The goal was to refinance an existing mortgage to release critical equity from a valuable residential asset. These funds were specifically earmarked to cover Development Application (DA) costs. Finalising the DA was the key to maximising the property's sale value, a crucial uplift in return on investment.

Why PMA?

Despite their strong property background, the clients faced hurdles securing finance from major banks, primarily due to factors related to age and income structure. 

PMA Solution 

PMA was able to provide the client with a first mortgage to refinance the clients’ current debts and also release equity for the soft costs of obtaining a DA.

Details

Amount: $400,000 (First Mortgage)

Property Value: $1,050,000

LVR: 38.10%

Term: 12 months prepaid plus 3 monthly extensions

Broker Commission: $4,400.00

*with no clawback

Exit

The borrowers’ clear and concise repayment plan was to sell the property once the DA was finalised and the potential for capital gain was fully realised.