Refinancing an AMF loan: what to check before you move it

AMF is an Australian private lender. A loan from a lender like it could be a first mortgage, a second-ranking mezzanine loan or a caveat loan, and that difference matters more than anything else when you come to refinance it, so it's the first thing to establish.

This guide is for borrowers whose AMF loan is coming to the end of its term, or whose plans have changed, and who are looking at moving the loan to another lender. Your first conversation should usually be with AMF itself, because an extension with your current lender is often the cheapest option, but if that isn't on the table or doesn't fit, here's how a refinance works.

Start with what kind of loan you've got

• A first mortgage. The refinance is a direct swap: the new lender pays out the existing loan, the old mortgage is discharged and the new mortgage is registered in its place. The process is the one we set out in refinancing a private loan to another private lender.
• A second mortgage or mezzanine loan behind a bank. If the bank loan is cheap and has time to run, it's usually better to replace only the second-ranking loan rather than refinance the bank as well.
• A caveat loan. Caveat loans are usually short, so the main question is whether to replace it with a registered second mortgage on a longer term or fold it into a new first mortgage. We compare both in consolidating a caveat loan or second mortgage.

What to check in your loan agreement

1. The expiry date and any minimum term. If there's a minimum term that hasn't passed, you'll pay interest for the full period however early you repay.
2. Early repayment and discharge fees. These go into the payout figure, so the new loan needs to cover them.
3. How interest was paid. If interest was prepaid, check whether any unused interest is credited back on early repayment.
4. Default interest. If the loan is close to expiry, know the default rate, because it usually applies from the day after maturity. We explain why that matters in refinancing a private loan that's already in default.
5. Notice requirements. Most agreements require written notice before repayment, so give it as soon as the new loan is approved.

Why borrowers refinance a loan like this

The most common reasons are the same across every private lender. The exit needs more time than the remaining term, the borrower needs more money than the current facility allows, or there's more than one lender on the title and it makes sense to tidy it up. None of these says anything bad about the current lender, they're just what happens when plans change.

What we'll need from you

• The property address, type and an idea of value
• A payout figure from AMF, or the latest statement
• A copy of the loan agreement and any other loans on the title
• What you need the new loan to do: pay out, release more money, buy time, or all three
• How the new loan will be repaid

How we do it

Vía Private lends first mortgages from $1M to $20M and second mortgages from $500K to $7.5M, for business and investment purposes, to companies and trusts, secured by property on the East Coast, for terms of 6 to 36 months. We can usually give indicative terms within 24 hours and settle in 5 to 10 business days once the valuation is in, and we set out the total interest, every fee and the exact payout at the end before you sign.

If your AMF loan is coming due and you want to compare a refinance against an extension, send us the scenario.

Vía Private is not affiliated with AMF. AMF is named only to describe a refinance scenario, and nothing here sets out its current products, terms or pricing, or compares them with ours. Check your own loan agreement for the terms that apply to your loan. Vía Private is an Australian non-bank private credit lender providing property-secured commercial loans to companies and trusts for business and investment purposes. All lending is subject to credit approval and valuation. General information only, not financial or credit advice.