Is Private Mortgage Or Refinancing from a private broker safe?
This is quite a frequently asked question when people considering borrowing outside of the traditional banks and mainstream lenders. There are many legitimate reasons why people may do that.
Usually, people who look into private lending are unable to secure a loan from the bank, due to bad credit history, insufficient income documentation or other reasons.
For these, a plausible alternative is to look at private lending. Sure, the rates may be higher, but at least it gives them a way of accessing much needed funds. Most people only need a short term private loan to tide through difficult times.
So is it safe to get a private mortgage or refinancing from a private broker? Below information may help you understand this industry more.
What is Private Lending?
Basically, private lending is just any form of lending that falls outside of traditional bank and mainstream lending. Private high net worth individuals often prefer to lend out funds through accredited and licenced private mortgage brokers or lending companies, as they are able to generate better returns.
This form of lending would suit clients who need funds urgently but who are unable to borrow from the banks. Typically, private loans are taking out over a shorter term, to help clients get through a difficult period.
So are Private Mortgages safe?
Private mortgages are generally very safe and protected through legal contracts. Modern day private lending has come a long way and comply with legal and regulatory requirements.
Each private lending agreements or contract is protected through legal contract and executed via proper legal channels.
So private lending is actually safe. However, a borrower and lender, must do their due diligence in reviewing the terms of the agreements. This will avoid any future disputes, which often arise due to one party not fully understanding the lending terms.
When taking out a private loan, mortgage or refinancing, it is very critical to get full guidance and counsel from a lawyer that specialises in this industry.
Private Mortgage Lending can help clients who face the following problems:
- bad credit history (can’t loan from bank)
- outstanding ATO debt
- company under threat of being wound up
- chased by creditors
- require funds to complete a construction
- loans for self employed with no proof of income or tax returns
- …and many more.
We Provide Private Funds For:
- Melbourne, VIC.
- Sydney, NSW.
- Brisbane, Gold Coast & Queensland.
- Perth, WA.
- Adelaid, SA.
Regardless of which state you are in, reach out to us and we will discuss your needs further.
Speak to Australia’s Trusted Private Lender Today.
We have helped many clients Nationally.