Private Mortgage Loan
what are private mortgages & how can you apply for one.
WHAT IS A PRIVATE MORTGAGE?
Private mortgage loans are an increasingly popular form of financing in Australia, funded by trusted individuals or companies who avail their wealth for private lending.
WHY GET A PRIVATE MORTGAGE LOAN?
BAD CREDIT? SELF EMPLOYED? BANKS SAID NO?
Many have benefited from taking out a private home or mortgage loan, usually when they can't borrow from the banks. This might be due to a variety of reasons. Discover how you can get a private mortgage loan from Gryphon Financial.
About Private Mortgages
What can a Mortgage Loan be taken for?
Mortgage loans can be taken for a myriad reasons. Typically, they are taken up by self employed individuals, using the equity from their existing property, to raise funds for their businesses or to purchase another property.
Many self employed individuals utilise funds raised through a mortgage loan to pay creditors, the ATO, and even undertake a major construction project.
The difference between traditional & private lending.
Bank loans and other forms of traditional lending typically require a lot more documentation.
A private loan can bypass a good number of these restrictions. If you find yourself in either the following situations, private lending would be the choice for you.
I am self-employed
If you are self-employed, chances are that traditional lenders will not be satisfied with your income declaration. If your payslips and income statements are found to be insufficient, a private lender can settle a mortgage on more flexible terms, which are better tailored to your personal financial situation.
I have a bad credit score
Traditional lenders will also almost certainly decline an application from a borrower with bad credit. Your credit score is negatively impacted by any late or missed repayments over the past seven years. Many banks and traditional lenders will not lend to individuals with bad credit. Private Lenders, on the other hand, are willing to work with individuals with bad credit, as long as they are satisfied with the other aspects of the scenario.
How do Private Mortgage Loans work?
These work similarly to typical home loans. However, they tend to be shorter-term and oriented towards resolving urgent financial situations. They are somewhat easier to secure, and the terms are more flexible. However, property with equity is required as collateral security, and the amount of equity you hold plays a major part in the amount of funds you will be eligible to borrow.
Property in Australia have a long-term record of growth and stability, making private mortgages a secure financing choice for all parties involved.
Are private mortgage loans legal?
Private loans are fully legal as all transactions are contracts regulated by the courts, and protected by Australian contract law.
Can you get an unsecured mortgage loan?
Private lenders are unlikely to offer unsecured loans as it would be too high of a risk for even them. The benefit of having a secured loan is that this risk is lowered, allowing lenders to offer you a better deal with less restrictions. This also means faster approval times.
*Disclaimer: The above information may vary with each lender and the unique conditions of each scenario.