Property finance with a defined security position.
First mortgage finance may support an acquisition, refinancing or eligible business requirement where suitable property security is available. Regalis assesses the asset and repayment plan together.
REGALIS / BorrowersProperty security with a defined position
The first mortgage position is one part of the credit structure. The assessment also considers the value and saleability of the property, the borrower's circumstances and the practical steps required to repay the facility.
A useful initial submission identifies the property, the amount required, the existing lender position and the proposed exit. Any restrictions, title issues or changes in use should be raised early.
The final facility documents explain the security, permitted purpose and obligations. A first mortgage does not remove the borrower's exposure to repayment, enforcement or changes in the asset value.
Assess the property and the borrower together
First mortgage finance involves a proposed first-ranking mortgage over property, subject to the legal security arrangements. The practical assessment includes title, existing mortgages, the amount required to discharge them and any other interests that could affect settlement or the lender position. A valuation is considered in the context of the property and the transaction.
The borrower also needs a credible repayment plan. For a sale exit, explain the marketing position, likely sale process and timing. For refinance, explain the proposed longer-term funding and what remains to be satisfied. If servicing relies on business or rental income, provide the supporting information and disclose obligations that compete for that cash flow. Identify property ownership, current use, occupancy and known title restrictions in the initial summary.
The process, explained
- 01
Describe the requirement
Start with the amount required, use of funds, timing and source of repayment. Identify the borrower and any broker or adviser involved so communication follows an agreed route from the outset.
- 02
Confirm the funding relationship
The team considers whether the scenario may be assessed for direct funding or through Regalis acting as finance broker. The proposed lender, service provider, costs and responsibilities are explained as the structure develops.
- 03
Review evidence and proposed terms
Detailed assessment can involve financial records, valuation, security review and legal documentation. Read the proposed costs, conditions, payment obligations and exit assumptions together. Raise missing information and changes promptly, before relying on an indicative position.
- 04
Document, settle and monitor
A transaction proceeds only when the relevant decision maker approves it and required conditions are met. After settlement, follow the facility reporting and repayment requirements and discuss material changes before an obligation is missed.
Questions before you proceed
Can an existing mortgage be refinanced?
It may be considered, subject to assessment. Provide the existing facility details and an indication of discharge requirements, including known costs or restrictions. Settlement depends on the required releases and new security arrangements being completed.
Does a first mortgage remove borrowing risk?
It does not remove repayment or enforcement risk for a borrower. Property values, sale timing, cash flow and finance conditions can change. Understand the obligations under the proposed documents and obtain appropriate independent advice before signing.
Start a considered conversation
A clear initial outline helps identify the next decision and the evidence needed to support it. Include the proposed timing and any complication that could affect the structure. Further information and transaction-specific terms follow through the appropriate assessment process.