Private Mortgage Loans
Please note: This type of lender works outside of the regulations of National Consumer Credit Protection Act (NCCP Act) so it always pays to have the level of professional assistance, experience and guidance we can provide.
Private Lenders
We have access to private mortgage funds and investors looking to invest in the security of a private mortgage. The normal loan-to-valuation maximum is 66% but some investors will consider a higher risk (often on a higher second mortgage rate) for a higher return. These loans must all be for company borrowers and/or commercial or business related security or lending. They are never covered by consumer protection laws.
Rates and fees for private mortgage loans
Rates and fees are always considerably higher than non-bank funders due to the higher return required by investors. They are set on a case-by-case basis and vary with security property type and location as well as the credit worthiness of the borrower entity and directors/guarantors. We do not promote this type of lending as usually other alternatives are readily available. Sometimes when the non-banks refuse to assist, there is little choice except sale of assets to clear debt.
Caveat Loans and Second Mortgages
Whilst never recommended to clients, at times there are few alternatives when monies for business purposes are required in a hurry and for a short term. There is always a need for a definite clearance source within a short time frame (such as sale of assets, stock, monies being collected etc). Very high fees and rates need to be justified by the business for this type of loan to be even considered.
Talk to us about your needs as often there are suitable longer term alternatives.
Applying for a loan
Ready to get started? Get in touch with Philip Pay on 0439 400 497 or email to find out how Finance Consulting Group can support your loan application.
