PMA Provides Refinance for Borrower Waiting on DA for Subdivision & Construction
Scenario
The Borrower was a seasoned property investor and developer with a strong repayment history, having successfully settled and repaid multiple loans with PMA in the past.
The purpose of this loan was to refinance an existing private loan at a higher rate which had matured.
The security was a residential property in New South Wales. The site spans approximately 7,149 sqm.
Why PMA?
The Borrower was unable to obtain traditional bank finance due to default judgments against the director. However, the borrowing entity maintained a clear credit record, allowing PMA to step in with a tailored solution.
PMA Solution
Investigation conducted confirmed bankruptcy obligations were cleared in full allowing us to provide a first mortgage solution providing significant interest savings until the DA was achieved to allow refinance to construction funding.
Details
Loan Amount: $1,040,000 (First Mortgage)
Property Value: $1,600,000
LVR: 65%
Term: 12 months prepaid plus 3 monthly extensions
Broker Commission*: $8,580 Referrer Fee plus $11,440 Service Fee
*with no clawback
Exit
The Borrower’s exit strategy was to refinance into a construction loan upon approval of the DA for subdivision.
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