Mortgage manager secures $100m backing

Commercial mortgage manager Private Mortgages Australia (PMA) has announced that a $100 million commitment from an “independent wholesale funder” will enable the company to grow the number of loans and raise the maximum loan amount from $2 million to $10 million on registered first mortgages.

The SME short-term loan specialist said that the institutional backing has also allowed it to offer base rates of 9 per cent per annum on some loans.

Speaking of the deal, PMA managing director Tony Barbone commented: “We expect that the changes to loan amounts and interest rates will attract a wider pool of borrowers and will help grow the business exponentially in the next few years.

“More and more of our referrers are coming to us looking for a more flexible lending solutions after their clients haven’t been able to obtain funding from the banks, so it’s great that we will be able to help even more of them now,” he said.

Mr Barbone continued: “Receiving this level of backing is a landmark achievement for Private Mortgages Australia, our borrowers and referrers.

“Our backers clearly believe we are a leader in this space and have confidence in our business model to provide fast and flexible finance to our SME and developer clients.”

He said that the company was “excited” to further build the business and deliver “even better products and service to our clients”.

[Related: Mortgage rates drop ahead of RBA move]