PMA Provides Funds for Land Purchase for Future Subdivision
Scenario
The Borrowers have backgrounds in small property development and land subdivisions.
The purpose of this loan was to complete the purchase of land for future subdivision.
The security offered was a residential property on 1.81 hectares, including four bedrooms, two bathrooms, a garage, and an in-ground swimming pool.
Why PMA?
The Borrowers could not get bank finance as the guarantors had ATO debts.
PMA Solution
Borrowers required to settle the property purchase quickly, whilst some other lenders were interested but they were not able to guarantee a quick settlement. PMA obtained a sworn valuation report within a few days, clear the ATO debts with loan funds and was able to meet the settlement date.
Details
Loan Amount: $840,000 (First Mortgage)
Property Value: $1,200,000
LVR: 70.00%
Term: 9 months prepaid plus 3 monthly extensions
Broker Commission*: 1.1% inc GST, Total $9,240
*with no clawback
Exit
The exit strategy was to refinance out to a construction loan.
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