Loan Update: Seasoned Investor Secured Second Mortgage with PMA

Scenario

The borrower has ten years of experience in property development and flipping, and they are active property investors. They currently hold investment properties in St Agnes, Goolwa South, and Ridgehaven.

The loan was intended to finalise the purchase of a residential development property in Tea Tree Gully, SA. They required to release equity from another property to meet settlement and statutory costs.

As security, they offered a residential property in Royston Park, a suburb of Adelaide, SA. This property sits on 790 square meters of land and features four bedrooms, two bathrooms, and a spacious garage.

Why PMA?

The borrower could not get bank finance as this was a short term loan and they were unable to satisfy traditional banks’ policies.

PMA Solution

PMA offered a no doc loan solution. We obtained consent from the bank that held the first registered mortgage. We then provided a registered second mortgage loan and released the required equity to settle the purchase of the Tea Tree Gully property. 

Exit

The debt was repaid when the Royston Park property was sold.