So you have heard of private loans or private lending? But what is it exactly? Is it safe to use and isn’t it always better to borrow from a reputable bank?
If you are in need of funds urgently, perhaps for your business or to conslidate your debts, you might have these questions on your mind.
This article helps to clear up some of these questions.
So what is Private Lending?
Any form of lending that does not fall within the conventional or mainstream lending of banks can be considered as private lending. This form of lending often involved private mortgage brokers who arrange the lending between private lenders and prospective borrowers.
The Private Lending industry has come a long way and is now an important sector of of the Financing industry. Private Lending is legitimate and regulated by the ASIC.
Is property required to borrow from a Private Lender?
Private cash loans or lenders do not require property but most private lenders are mortgage lenders. Hence, property with equity available on it is required. The amount one can borrow will depend on how much equity is left on the property – which is used a security in the lending contract.
Most private lending are executed as Private Mortgages or refinancing, allowing the borrower to cash out funds which can used for a range of purposes such as business funding, debt consolidation or to resolve other financial issues.
What mortgage rates can I expect from a private lender?
The mortgage rates for a private home loan is expected to be higher than if one borrowed from a bank. This is due to the fact that most private lending addresses an urgent need and private lending is generally more accessible to borrowers who may find it difficult to get a loan from the banks.
Why borrow from a private lender and not a bank?
In general, most people will try to get a mortgage or refinancing loan from the banks. However, many people such as self employed or those with a bad credit history, may find it very difficult to get a bank loan approved. Banks also require far more supporting documents than private lenders, and have stricter compliance measures.
Where can i get more info about Private Lending?
Gryphon Financial is Australia’s Trusted National Private Lender & Broker. If you need help with funding and have property with equity on it, feel free to contact us for a quick discussion. We will provide professional guidance on how you can access private funding through out network of over 200+ private non-bank lenders.