Private Home Loans & refinancing
what are private Home Loans & how can you apply for one.
WHAT IS A PRIVATE MORTGAGE?
Private home loans or mortgage 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 Home Loans
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.
Other FAQ
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.
Gryphon Financial - Private Lender for Home Mortgage Loans
Why use a Private Home Loan?
Private home loans have gained significant popularity in recent years, and for good reason. In private lending, lenders deal directly with borrowers, bypassing traditional financial institutions and the usual issues and restrictions that come with it. Additionally, It is often a much simpler process that may be a better fit for your needs. Let’s explore why private lending may be for you.
First we have accessibility: Private lending offers great accessibility to borrowers who may face challenges in obtaining loans from banks. However, individuals or businesses with lower credit scores, unconventional financial backgrounds, or limited documentation and collateral can still secure financing through private lenders.
This inclusivity provides opportunities for those who might otherwise be denied loans, promoting financial inclusion. It is our goal at Gryphon Financial to find the loan that best suits your unique circumstances.
Another benefit is the speed and flexibility: A private home loan often offers faster approvals and quicker access to funds.
Private home loan lenders have more flexibility in their decision-making processes, enabling borrowers to address urgent financial needs promptly. Our lenders all around Australia are experienced and have a good understanding of the type of loan you may seek.
The streamlined nature of private lending allows for more agility and responsiveness to borrower requirements.
Although there are many good points to make about private lending, do keep in mind that the interest rate may be slightly higher, to account for the increased risk undertaken by lenders.
Additional benefits on why you should consider a Private Home Loan
Personalized Loan Terms: Private lending allows for more personalised loan terms and negotiations. Borrowers have the opportunity to directly communicate with their lender, discuss their financial situations, and negotiate based on their specific needs. This personalised approach can result in more flexible loan arrangements that align with the borrower's circumstances, which may not be possible with standardised terms offered by traditional lenders.
Alternative Investment Opportunities: Private lending presents an alternative investment avenue for individuals seeking diversification in their investment portfolios. Investors can allocate funds to peer-to-peer lending platforms and directly lend to borrowers, potentially earning higher returns compared to traditional investment options. This diversification can help mitigate risks by spreading investments across multiple loans and borrowers.
Innovation and Technology: Private lending platforms often leverage innovative technologies and digital platforms to facilitate lending processes. These advancements streamline loan applications, underwriting, and fund transfers, making the lending experience more efficient and convenient for both borrowers and lenders. The integration of technology in private lending enhances the overall user experience and simplifies the borrowing process.
Niche Needs: Private lending fills gaps in the market by catering to niche financing needs. Borrowers with unique projects, specialised industries, or unconventional business models may find it challenging to secure loans from traditional lenders who have more rigid criteria. Private lenders, on the other hand, can evaluate such projects on a case-by-case basis, providing financing solutions tailored to specific industries or ventures.
It's important to note that while private lending offers these advantages, borrowers should carefully consider the associated risks, such as higher interest rates, limited regulatory oversight, and potential challenges in credit building. Each individual's financial situation and goals should be assessed to determine whether private lending is the right choice for their specific needs.
At Gryphon Financial, we’ll compare among over 200 lenders nationally to find the best and most competitive loan for you. If you think that a private loan is the right way to go, contact us today and we’ll get back to you in a single business day for a quick approval. Remember, at Gryphon Financial, We Turn a No into a Yes.