$570K refinance when the old lender wouldn’t extend
"Presales in place, construction delayed, a loan maturity mismatch left the borrower exposed."
A six-townhouse development in Maroochydore utilised a $570K equity injection from the borrower's West Woombye residence. Construction delays extended the project timeline, and the loan on the residence reached expiry. The existing lender was unable to extend.
The development timeline shifted beyond the facility's maturity date. The current lender wouldn't extend, putting the borrower's equity at risk. The borrower needed a new facility quickly to bridge the gap.
Solution: $570,000 facility secured against the West Woombye property, with a hybrid interest arrangement, part serviced monthly, part capitalised, to manage cash flow during the construction period.
Outcome: Refinance completed. Project equity preserved. Borrower maintained their development timeline, without a forced asset disposal.