Private Lenders And Covid

Private lenders have proven they are needed more than ever in today’s lending markets, whereby their injection of capital into small business lending and self employed home refinance loans during the Covid pandemic has been just the medicine

There are different private lender types:

Private first mortgage lenders - These private lenders play in the first mortgage lending space. They can sometimes be AFSL holders like Australian Secured Capital Fund who take investor funds and lend it out to borrowers throughout Australia. Other private first mortgage lenders might just be smaller private lenders like ABN Capital who will lend against property for business use for a short term.

Private first mortgage lenders typically require very limited financials from the borrower and have higher interest rates because of it. They also tend to forgive bad credit, mortgage arrears and the like, giving the borrower an opportunity to take a private first mortgage for a short term period, say 12 months, in which time they can rectify their bad credit mortgage or lack of financials, then refinance into a more traditional first mortgage lender.