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First home buyer? How to get a home loan

Private funding is available for individuals who struggle to obtain loans through traditional sources of funding like banks etc. Seeking home loan finance for the first time can be confronting if you are unsure about the private funding industry. If you have less than perfect credit and are seeking a quick fuss-free settlement, then private funding is the way to go. How private funding works is, simply apply to multiple private lenders or brokers by describing your loan scenario, type, and amount. Generally, due to the increased risk of these loans, private lender’s interest rates are typically higher, however with that saying your home loan can be financed quickly without any hassles.

What is a private lending and what are the risks?

Private lending refers to an individual or company that has access to a pool of funds. Generally, if individuals are unable to receive a private mortgage/loan through traditional lenders like banks, the only option is to seek funding from private lending brokers or lenders. The benefits to seeking a private loan through private funding are a quicker settlement, easy approval, and specialized loans. However, due to the nature of private lending and the risk with complicated loans, there are a few risks with private lending, including, higher interest rates, short-term loans, and lack of features.

What is a private mortgage?

Obtaining a private mortgage loan can be difficult for individuals that are new to the private lending market in Australia. If you need a private loan in Australia and are struggling to seek a loan through traditional sources like banks, then private finance may be your only option. A private mortgage loan is a home loan sourced through private funds rather than a traditional mortgage lender. Private finance for a home loan may be the solution to business working capital, property purchase, or refinance needs. There are four main types of private mortgage loans in Australia that private lenders generally offer: 

  • Bridging loans

  • Caveat loans

  • Bad credit loans

  • Second mortgages

How to find a good home lending specialist?

Home lending specialists, generally private lenders help clients secure home loans to either buy, build, refinance or renovate an existing property. Private lenders offer flexible home loans to suit your needs no matter what stage you are at. If you are new to the home lending market, usually individuals first try traditional lending sources like banks to obtain a home loan, however, due to many reasons ranging from a less than perfect credit to being a highly leveraged property investor, they cannot fund your loan. This is typically where borrowers apply with private lenders for a quick hassle-free settlement.

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