Bulletin - Product Update 30 November 2023

 Please go to https://www.sma.fund/blog-1

PMCS Bulletin and Loan Product Matrix - 18 Oct 2023

 Please follow the link for full details - 

https://www.blogger.com/blog/post/edit/3618396304803035336/1081770441832000908 

PRIVATE & Non-conforming First Mortgage Loans as at 6 July 2023

 

Loan & Interest Rate Update

Genuine "Home Office" PRIVATE LENDING

This is NOT institutional funding. Each scenario is a clean canvas and will be considered on its individual merits. 

Preferred range is $1.00M to $5.00M for existing residential securities, though larger transactions will be considered on merit. Development finance and commercial securities will also be considered.

LVR       Fixed Rate (1 year)

65%       8.50% pa (for strong, well-located deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10.00%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment negotiable + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

PRIVATE & Non-conforming First Mortgage Loans as at 6 July 2023

 

Loan & Interest Rate Update

Genuine "Home Office" PRIVATE LENDING

This is NOT institutional funding. Each scenario is a clean canvas and will be considered on its individual merits. 

Preferred range is $1.00M to $5.00M for existing residential securities, though larger transactions will be considered on merit. Development finance and commercial securities will also be considered.

LVR       Fixed Rate (1 year)

65%       8.50% pa (for strong, well-located deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10.00%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment negotiable + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Loan Product & Interest Rate Update

 

Loan Product & Interest Rate Update

First Mortgage Loans as at 26 May 2023

"If nothing changes, nothing changes"; and nothing much has changed since our last update

 

"Home Office" PRIVATE

Preferred limit is $1.00M to $3.00M for existing residential securities, though larger transactions will be considered on merit. Commercial securities also considered.

LVR       Fixed Rate (1 year)

65%       8.00% pa (for strong deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment 1.50% + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Loan Product & Interest Rate Update

 

Loan Product & Interest Rate Update

First Mortgage Loans as at 26 May 2023

"If nothing changes, nothing changes"; and nothing much has changed since our last update

 

"Home Office" PRIVATE

Preferred limit is $1.00M to $3.00M for existing residential securities, though larger transactions will be considered on merit. Commercial securities also considered.

LVR       Fixed Rate (1 year)

65%       8.00% pa (for strong deals only*)

* For standard quality private loans up to 70% LVR, interest rates range from 10%pa -12.00%pa, NO VALUATION & 7 DAY TURNAROUND is possible depending on quality, urgency, location and the nature of the deal). 

Establishment 1.50% + legal fees + valuation if applicable

 

“NON-CONFORMING” (or “no doc”)

Up to $3.50M loan per security (residential) - $750,000 per security (commercial)

Up to 75% LVR 

Up to 3 year term

Current Interest Rates from 9.70%pa

Establishment fee 2.00% + legal fees + valuation

 

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

First Mortgage Loans - Product and Loan Interest Rate Updates 5 May 2023

 “NON-CONFORMING” (or “no doc”) 

While PMCS primary business focus remains in the “home office” private mortgage loan space, our supplementary “non-conforming” product has a couple of substantial improvements (and one change unfortunately brought about by the RBA). Our current loan interest rates for both products are set out below. 

Non-conforming residential loan limits have increased to $3.50M loan per security (up from $2.00M) with a maximum exposure per borrower of $5.00M (unchanged from the previous limit). In both instances, where a particular transaction is very strong, we can consider facilities above those limits. 

We are now also able to consider loans of up to $750,000 secured by commercial property. 

Current Non-conforming Interest Rates for Existing Residential Investment Dwellings 

LVR       Variable                                      Fixed (1 year – up to 3 years available)

65%          9.70% pa                                       9.95% pa (standard quality proposals)

70%          10.15% pa                                     10.45% pa

75%          10.75% pa                                     11.00% pa

Establishment fee 2.00% + valuation + legal fees

 

"Home Office" PRIVATE (generally “bridging” loans)

LVR       Variable                                      Fixed (1 year)

 

65%       8.00% pa                                      8.00% pa (Class A proposals in limited locations)

Standard rates up to 70% LVR presently range from 10%pa -12.00%pa, with fees negotiable depending on urgency, location and the nature of the deal). Development funding may also be considered.

I look forward to discussing any scenario with you.

Steven Acworth

+61 488 224416

Email steven@sma.fund

Loan Rate Bulletin

 

Existing Residential Investment Dwellings

"Home Office" PRIVATE & NON-CONFORMING

First Mortgage Loans as at 27 April 2023

 

LVR       Variable                                Fixed (1 year – up to 3 years available)

65%       8.00% pa                        8.00% pa (Class A proposals in major locations)

65%       9.45% pa                          9.70% pa (standard quality proposals)

70%          9.95% pa                            10.20% pa

75%        10.45% pa                            10.70% pa

The above prices are for straightforward proposals, in category 1 locations, existing dwellings, investment loans up to $2.00M per security property. For other prices, POA.

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Current Lending Rates

 

Existing Residential Investment Dwellings

"Home Office" PRIVATE & NON-CONFORMING

First Mortgage Loans as at 13 April 2023

 

LVR       Variable                           Fixed (1 year – up to 3 years available)

65%       8.00% pa                        8.00% pa

70%          9.95% pa                            10.20% pa

75%        10.49% pa                            10.74% pa

The above prices are for straightforward, category 1, existing dwelling, investment loans up to $2.00M per security property. For other prices, POA.

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Loan Rates Bulletin 20 March 2023

 

First Mortgage Loans

Residential Investment Properties

(Development, Commercial & Other Structured Facilities - POA)

"Home Office" PRIVATE (Bridging) & NON-CONFORMING

 

 

 

 

While residential price trends and sentiment have generally improved over the past few months, it's still on a postcode-by-postcode basis.  PMCS is presently more focussed on LVR, location and saleability of the real estate asset/s securing its loans than has been the case for a while.

Settlement liquidity and investor participation however remains strong.

"Home Office" PRIVATE - up to $10.00M

LVR                                Up to 70% (65% preferred)

Rate                               9-12% pa fixed (case by case - LVR, location, urgency etc)

 Type & Term               One year (minimum 6 months), interest only

Location                        Capital cities and major regional centres (Eastern States preferred)

NON-CONFORMING - up to $3.00M per security property

LVR                                 Up to 75% (70% preferred)

Rate                                9.45% pa (fixed one year - up to 3 years fixed rate available)

                                        9.45% pa (variable - basis RBA)

Type & Term                Up to 3 years, interest only

Location                        Capital cities and major regional centres, Australia-wide

I look forward to discussing any scenario with you.

Steven Acworth

Mobile   +61 488 22 44 16    

Email    steven@sma.fund  

Web     www.pmcs.fund

Breaking News – RBA lifts cash rate another 0.25% But what does it mean to a private lender, and how should we analyse risk?

 

Breaking News – RBA lifts cash rate another 0.25% But what does it mean to a private lender, and how should we analyse risk?

 

It seems totally appropriate to me that in our statistically voracious world, the adage “There are three kinds of lies: Lies, Damned Lies, and Statistics” — has been attributed to Mark Twain, who himself attributed it to British Prime Minister Benjamin Disraeli, who might never have said it in the first place.

Lies, damn lies, and statistics. Do statistics relating to the decline in home values around Australia “speak with a forked tongue”?

Yes and no.

In simple terms, I have been unable to find statistics that drill down the way I’d like for my practical needs. Loan to valuation ratio (LVR) is the single most important determinant in private mortgage lending. And in a softening valuation market, it’s not only the direction, but also the pace of that softening which is important.

Numbers that I’ve been able to find regarding recent house price reductions are interesting in general trend terms, but they seem to only relate to the real estate adage – location, location, location – broken up as to Australia, State, City/Town, and even suburb.

What is missing, is price point analysis within those locations; and in my view, that is what a private lender needs to determine current LVR and risk profile.

There is no doubt that the general trend for house prices has been down for some time. Briefly, in that context, it is interesting to note that CoreLogic’s national Home Value Index in January declined by 1.0%, after the decline on December was 1.1%.  This January reduction was the smallest month-on-month decline since June last year.

The consensus seems to be that house price reductions will continue.

Today, Reserve Bank of Australia (RBA) called its ninth consecutive interest rate hike since May last year, upping the official cash rate to 3.35 per cent on Tuesday (7 February) - the highest level since late 2012. It is largely expected to increase further at the next RBA board meeting on Tuesday, 7 March 2023.

PropTrack director for economic research Cameron Kusher commented: “At the beginning of May 2022, official interest rates were sitting at 0.1 per cent. By the end of 2022, the cash rate had increased to 3.1 per cent.”

“Today, the Reserve Bank lifted rates another 25 basis points.

“With borrowing costs continuing to rise and the subsequent reduction in borrowing capacities, property price falls are likely to continue and accelerate in 2023, with the more expensive cities likely to see the largest price falls.

“Nationally, we are forecasting prices to fall by a further 7 per cent to 10 per cent by the end of this year. 

He added: “With the RBA’s hike of 25 basis points today, we’re expecting an additional rate rise of 25 basis points, or thereabouts, likely to follow next month.

“Thereafter, we expect rates to remain on hold, with the potential for them to be reduced in late 2023 or early 2024. 

“We anticipate these further interest rates rises will push prices lower. However, a lower interest rate peak and earlier than expected interest rate cuts could ease price falls,” Mr Kusher stated.

And all of that is very interesting. But wouldn’t it be great if we could form a view on LVR appetite based on the inter-relationship of location by price point? If someone can point me in the right direction, I’m all ears.

 

Steven Acworth

 

PMCS Loan Product Profile

 

I trust that 2023 has started well for you.

As reported late last week in "Mortgage Business" magazine… "refinancing activity in December reached its second highest level ever, while the value of new loans continued to fall."

As you know, more interest rate increases are likely! With the current round of rate hikes, increasing refinance activity and tightening credit policies, we believe that there will be greater borrower demand for genuine "home office" private lending in the coming year, and an increasing volume of funds available from private investors to service that demand. 

We have been asked to highlight our exact services briefly, but with sufficient information for you to know whether or not we may be of service to you.

We provide - First Mortgage Loans for Residential Investment (acquisition of refinance) as outlined below. Yes, we do provide Development, Commercial & other Structured Loan Facilities. You should contact us to discuss the particular scenario.

PMCS is not a Finance Broker. We do not deal directly with borrowers and all of our business comes from referral sources.

Our traditional expertise is in private lending.

We do however have an Australia-wide, “non-conforming” product which we can use to “exit” our own private position, or which may offer a better option where there is sufficient processing time to settlement and/or where a higher LVR or longer term is required.

PRIVATE & NON-CONFORMING LOANS AVAILABLE

Below is a summary product guide. For further details, please contact PMCS.

PRIVATE

LVR                                  Up to 70% (65% preferred)

Rate                                 10-12% fixed

 Type & Term                 One year (minimum 6 months), interest only

Location                         Major centres (Eastern States preferred)

External Valuation       May not be required for conservative LVR

Establishment fee      From 1.25%, and may be built into the loan interest rate under some circumstances

NON-CONFORMING

LVR                                  Up to 75% 

Rate                                 8.99% (variable - RBA)   

                                          9.49% (fixed one year - up to 3 years available)

Type & Term                  Up to 3 years, interest only

Location                         Capital cities and major regional centres, Australia-wide

External Valuation      Required in all instances

Establishment fee      2.00%

 

I look forward to hearing from you to discuss any scenario.

Steven Acworth

Mobile   +61 488 22 44 16   

Email  steven@sma.fund  

Web   www.pmcs.fund