1300 529 603

 Toll Free Number

1300 529 603

Toll Free Number

1300 529 603

Toll Free Number

Are private loans available to property investors?

Group checking if private loansd are available for property investors | Financial Information | Tiger Finance

Table of Contents

If you’re a property investor looking into private funding, you might be wondering if it’s the right route for you to take. Private funding has many benefits, such as quicker approval timers, and specialist loans being available. Private loans may benefit property investors, whether you’re looking to develop a property of your own or to invest in an existing one. 

Read on below to find out everything you’ll need to know about private loans. 

What is a private loan?

A private loan is a line of funding that comes from private lenders, instead of traditional lenders such as banks.  Private lending may offer more options in terms of easier approval, quicker processing times and less need for a good credit score. Private lending may be a good option if you are finding the traditional forms of lending criteria too strict, or too hard to meet.

Are private loans available to property investors?

Looking for a private loan | Financial Information | Tiger Finance

Depending on what you are actually looking to use your loan funds for, your occupation usually won’t stop you from getting a loan. However, if you are a property investor and are looking to develop, you may find a development loan more suitable. Generally, these can also be obtained through private lenders and are tailored to help your development run smoothly.

If you’re looking to purchase a property as a property investor, private funding may be the answer for you. Some benefits of private funding are:

  • Quicker settlement – If you happen to require a loan quickly, the approval process for private lending is usually faster, and can involve less paperwork than getting a loan through a bank.
  • Specialised loans – Private lenders are often able to cater to those who need a wider range of loans, while also having far less strict lending in comparison to traditional funding. This may be ideal for those seeking short term finance.
  • Credit history – Having a good credit history may not be necessary to gain approval from a private lender. Many people seeking finance have previously been rejected by banks for having a lower credit score.
  • Easy approval: If you cannot prove your income via the traditional methods that are needed by banks, a private lender may be able to offer you an easy solution.

What kind of private loans are there?

Couple finalising buying property | Financial Information | Tiger Finance

The term ‘private loan’ is quite broad and does not really explain what you can use one for. In most cases, private loans can be:

  • Bridging loans – These are short term loans that are taken out to buy a new home before selling an existing property. These are interest-only loans that are then repaid after the sale of the original property.
  • Caveat loans – A caveat loan is a short term loan option that allows fast access to funding when secured against additional property owned by the developer. Caveat loans can be the fastest to both apply for and settle. Only a viable option for the short term, caveat loans are generally only for a few months. The private lender decides how you will repay the funds before approving your loan.
  • Bad credit loans – Are loans which usually sought out by borrowers who have a bad credit history. This can be caused by a variety of factors, including overdue bills or defaulting on a previous loan payment. By having a poor credit history, lenders are usually loath to lend to you. Lenders may perceive you as a high risk. These loans are usually short term and fixed-rate, allowing the borrower to repair their credit history.
  • Second mortgages – These occur when a borrower has already taken out the first mortgage on their existing property, before deciding to take out a second loan against said property. For this type of loan, the first mortgage must be repaid before any money goes toward repaying the second.

Where does Tiger Finance come in?

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

We have helped countless Australians get approved for private funding. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That is wrong, and it should not hold you back.

How we can help

Our finance specialists can help you find the right loan for your project. If you are one of the many Australians finding getting a business loan difficult, Tiger Finance can make the process simple and pain-free. Call our specialist team today to have your free initial consultation. 

Table of Contents

Find MOre Information

tiger-finance-logo-mobile

Great Loans, The Easy Way!

Our vision is to make it simple and easy for every Australian to get the funding they need to achieve their big life goals. 

Services

More Information

Need A Loan?

National Home Loans Group Pty Ltd trading as Tiger Finance | ABN  57 168 971 346 

Tiger Finance Credit Representative: Kiara Patricia Halley | Credit Licence: 468465 

*Interest Rates: Conditions, fees and charges apply. Interest rates are subject to change and will vary. We cannot guarantee that the interest rate advertised on our website will be the one offered to you. Interest rates offered will be dependant on your situation.

*Consolidating high-interest personal loans and credit cards into a lower-interest home loan may result in significant savings on interest for some consumers. However, this solution may not be suitable or accessible to everyone.

*The approval timeframe is varied. Approval time is subject to change depending on your circumstances or loan type. Processing times may be subject to your lender.