Lending
Case Studies

Property Development

Background: A borrower applies for a loan to acquire two side-by-side lots equaling 1,200m² in the inner suburbs of Melbourne, valued at approximately $2.8 million. The borrower intends to demolish the existing dwellings and raise four luxury townhouses with an estimated GRV of $12 million.

Security: First Mortgage

LVR: 70%

Loan Amount: $1,960,000

Term: 36 months

Interest Rate: 10% p.a.

Rent Roll

Background: A Brisbane-based real estate agency with an established property management business has requested a loan to purchase a rent roll from a competitor in a neighbouring suburb. The rent roll has 186 active leases, a 2.9x multiplier applied to its gross annual income, and a purchase price of $980,000.

Security: Director guarantees secured with collateral

LVR: 80%

Loan Amount: $784,000

Term: 36 months

Interest Rate: 10% p.a.

Property Development

Background: A borrower is requesting a loan to secure a development site in a prime inner city location. Urgent funding to settle is required whilst their overseas partner arranges for funds to be transferred.

Security: Second Mortgage

LVR: 80%

Loan Amount: $1,100,000

Term: 3 months

Interest Rate: 28% p.a.

Property Development

Background: A borrower is requesting a loan to refinance an existing debt on a property development. The borrower is currently waiting on settlement of stock they have sold to provide liquidity within the coming weeks but urgent funding to settle the refinance is required in the meantime.

Security: Unregistered second mortgage with provision of caveat and personal guarantees

LVR: 80%

Loan Amount: $1,600,000

Term: 3 months

Interest Rate: 27% p.a.

Construction Loan

Background: A property developer has requested a construction loan for 20 townhouses in the northern suburbs of Brisbane. The site has an unencumbered land value of $4,000,000 and a GRV of $18,000,000.

Security: First Mortgage

LVR: 65%

Loan Amount: $10,000,000

Term: 36 months

Interest Rate: 14% p.a.

Construction Loan

Background: A property developer has requested a construction loan for 26 townhouses in the southeastern suburbs of Melbourne. The site has an unencumbered land value of $4,450,000 and a GRV of $19,230,000.

Security: First Mortgage

LVR: 65%

Loan Amount: $6,000,000

Term: 36 months

Interest Rate: 14% p.a.