What is Private Mortgage & Refinancing?
Quick Info About Private Mortgages or Refinancing via Private Lenders.
When the banks say No, it’s time to consider a private home loan.
What is Private Mortgage and Refinancing?
If you have been trying to get a loan from the bank and have not succeeded, you might have heard of private lending. Private Lending a flexible and viable form of non-bank lending.
A Private mortgage or private refinancing is simply mortgages or refinancing offered by private lenders.
These private loans are secured against realestate with suitable equity. The banks criteria for lending can be overwhelming and hard to achieve. They require financials, tax returns, BAS, payslips, a specific amount of net profit to consider a loan. More importantly they also require clean credit. Private lending does not require all that information. Generally speaking bank statements or an accountants letter will suffice. Also any credit situation is considered. Private lending also still offers asset lending. This is where all costs and interest are prepaid from the loan and no proof of loan servicing is required. The sale of property is a pre requisite for this type of loan.
Private mortgages and private refinancing still need to comply with the laws of each state and as such can be a safe alternative to Bank Lending.
Who are Private Lenders?
Private Lenders are high net worth individuals or companies who have funds available for lending. Instead of depositing their cash into a bank or investment plan, they prefer to lend it out. They get a much greater return doing this than interest from their bank or investment plan. Private Lending rates a generally higher than bank rates. This is because Private Lenders are prepared to take more risk and be more flexible in relation to their borrowers. Especially those whom the banks won’t lend to.
Some Mortgage brokers specialise in Private Lending. They act on behalf of the borrower and introduce them to the Private Lenders. On settlement of a successful introduction the mortgage broker normally gets paid a brokerage fee. When using a mortgage broker, it’s important to choose one that is reliable and has a current Australian Credit License (ACL) or is a credit representative (CR).
How safe are Private Loans?
As with all loans it is important to understand all the terms and conditions. In general most loans provided by a Private Lender will require the guarantors/borrowers to get legal and or financial advise as part of their mortgage documents. This ensures all parties understand what they are getting into and can make an informed decision
Who needs a Private Loan?
Anyone who has property with equity, and who falls outside of traditional bank lending. Meaning, the banks won’t lend to them due to bad credit, lack of documentation or security type or what the funds are required for. Most borrowers that enter into a Private Loan are self employed. They may need funds to satisfy creditors, expand their business, pending legal action, make a purchase.
Private Lending is great source of funding for these types of borrowers.
Where to get a good Private Mortgage or Private Refinancing?
Private Lending is a growth business. As main stream lending tightens up Private Lending has seen exponential growth over these few years. It is import that when you are looking for a Private Loan you either reach out to your mortgage broker or chose a Private Lender that is known for their ability to perform. By that we mean settle a loan to the satisfaction of all parties. Remember Private Lending is not about rate, it’s about performance. It’s there to fix a problem and do it quickly. Which far outweighs a modest increase in rate.
You can research online for a good private lender or mortgage broker to work with. Make sure you review their website carefully and call to speak with the mortgage broker or Private Lenders Lending Manager. It is often easy to tell if a private lender or mortgage broker is reliable and knowledgeable just by speaking with them.
You can also call Gryphon Direct has been in the industry for over 15 years and we have a network of over 200 trustworthy private lenders. If you can’t borrow from the bank and have property with equity, we may be able to help you get an approval quickly.
Private Mortgage & Refinancing Loans From Gryphon Direct
At Gryphon Direct, we have been helping families across Australia for over 15 years. This is includes offering customized private home and business loans to Melbourne, Victoria. If you reside in Melbourne, own property, and wish to enquire about a private loan, speak with us today.
Below are some scenarios where our private loans have helped families or businesses in Melbourne:
- bad credit history
- 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.