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Private Loans In Melbourne

Break Free Home Loans are a leading Melbourne mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

Do you need to borrow hard money to finance your mortgage? Is a credit issue getting in the way of your loan approval? Don’t worry. You can secure the funds with alternative finance options from private lenders. If you’re in the market for private loans Melbourne has a number of reputable lenders to choose from. With so many options available, it’s important to compare interest rates, fees, and repayment terms before making a decision. Talk to our brokers today, we can help you compare rates for some of the most competitive private loans in Australia. We’ll connect you to the right lender to give you the financing you need.

What Is Private Loan?

Why should you look into private lenders? Private loans can be a great option for individuals or businesses who are struggling to obtain funding from traditional lenders such as banks. Private loan lenders are typically more flexible than banks and are willing to work with borrowers who may have less-than-perfect credit. Furthermore, private lending options aren’t simply limited to finance companies. They can include any non bank lenders including private individuals that loan money, community based private money lenders, credit unions, online lenders to private equity crowdfunding.

How Does It Work?

If you’re looking for a private loan in Melbourne, there are a few things you should keep in mind. First, private loans typically come with higher interest rates than loans from banks. Second, private lenders may require collateral, such as a home or vehicle, in order to secure the loan. Finally, private loans are often shorter-term than bank loans, so you’ll need to be sure you can repay the loan in a timely manner.

How Much You Can Borrow

How much can you borrow with a private loan?

The amount you can borrow with a private loan will depend on the lender. Some private lenders will only lend up to $10,000 AUD, while others may lend up to $100,000 AUD or more. You will generally qualify for larger loan amounts into the millions for private development loans and commercial loans. This will be largely based on the specific property valuation among other things. In commercial loans, the amount for your private finance loans will also be determined by your type of industry and the purpose for which you’ll use the finance.

Ultimately, however, the amounts vary. In most cases, Aussie private lenders will lend you a maximum of 80% of the appraised value of your property. However, they will also consider other factors such as your income, credit score and employment history when deciding how much to loan you.

What Are The Benefits?

There are a number of reasons why private lenders can be a good option for borrowers in Melbourne.

  1. Flexibility: First, private lenders may be more flexible than banks when it comes to loan terms and conditions. This can make private loans a good option for borrowers with less-than-perfect credit who might not qualify for a loan from a bank.
  2. Faster approval: Second, private lenders typically have a shorter turnaround time than banks. This means that borrowers can get their loan funds faster, which can be helpful in emergency situations.
  3. Tailored finance: Finally, private lenders may be able to work with borrowers to tailor a loan that meets their specific needs. For example, a private lender may be willing to structure a loan with a lower interest rate for a borrower who is willing to make a larger down payment.
  4. If you’re considering taking out a private loan, be sure to compare offers from multiple lenders to find the best deal. And remember to read the fine print carefully before signing any loan agreement.

How To Apply For Private Loans?

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1. Check eligibility

Check your eligibility for the lender’s loan product. Only apply for a loan you can afford. Do this by comparing rates, fees and loan terms of all your options. Consider if your repayments will fit into your budget for the life of the loan.

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2. Submit application

Submit your application. Some lenders offer great convenience by having their application process entirely online. Your application can be lodged and processed in as little as 24 hours or several business days.
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3. Get pre-approval

Lenders will review your credit score and credit profile to determine your eligibility for their loan. They will prepare a letter of offer for you, specifying your loan amounts, rates, fees and repayment schedule if you meet their lending criteria.
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4. Receive funding

You’ll have your funds deposited into your nominated bank account once your loan is approved. You can access the finances you need and begin making your loan repayments.

Reasons To Borrow From Non Bank Lenders

Funding your property or business can be a challenge for many borrowers. Going through the traditional approval process with banks can take a long time. Additionally, there is a high chance of rejection if your credit does not meet their strict lending criteria. Many borrowers need immediate access to funding, and most times, the difficult and lengthy approval process that comes with bank loans hinders this.

A private lender can give you the flexibility you need to get your loan approved successfully in a faster approval process. With more lenient lending requirements, private finance allows a quicker alternative for borrowers who cannot meet traditional lenders’ criteria. You can apply for private lenders Melbourne companies to private loans from individuals for any of the following purpose:

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Commercial

Do you want to grow your company but don’t have the financial means? Private lending allows you to borrow money that banks are unable to offer. Our private loan brokers can assist you if you don’t have financial statements but do have property equity. With private commercial loans, you may get financing for business premises, purchase, refinance, receive working capital, hiring and expansions or obtain other types of loans.

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Developable Land

Are you planning to build or develop land into properties? Land development and building developments are popular reasons why borrowers seek out finance. Lacking buyers and investors or liquid funds from your own personal capital is a common issue. If you have a deadline you need to meet or your project is running over budget, getting private lending can be critical for you to realise your goals. From new blocks, renovations, extensions to refurbishments, we’ve helped residential and commercial builders and developers find loans for their projects.

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Residential

Private loans can be used for a variety of purposes, including investment property purchase, home renovation, business expansion and more. But perhaps, the most popular reason it exists is for residential borrowers to find the funding they need. Residential private lending has seen a renaissance in Melbourne over the past decade. Private lenders are now playing an important role in the mortgage market, providing an alternative source of funding for borrowers who may not be able to access traditional finance.

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Other

Some people might need private loans to cover a business venture, others might need it for medical reasons or to cover the cost of education. There are many different reasons why someone might seek out a private lender, and each case is unique. Borrowers can shop private lending to cover a wide range of finance needs—from business loans, medical loans, education loans, home loans to various personal loans. Whether you need to pay for emergency expenses or some unexpected costs, private loans allow you to forgo the lengthy approval process and strict lending requirements of bank loans.

Things To Keep In Mind When Applying For The Loan

Each private lender will have its own lending criteria, so it’s important to do your research and find one that suits your needs. The following are some things you should take note of when you apply for a private loan:
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Interest Rate

It’s also important to remember that private loans often come with higher interest rates than traditional bank loans, so be sure to factor this into your repayment plan. You can opt for fixed interest rates where your repayment amounts will stay the same over the life of your loan, or variable rates where your repayments will fluctuate according to the market’s interest rate. Alternatively, some lenders may also offer split-rate options where you can take advantage of the market’s bottom while hedging against future rises for certain periods.

Interest rates on private loans can vary widely. Some private lenders may offer rates as low as 4%, while others may charge rates of 10% or more. The interest rate you qualify for will depend on the lender, your credit score, and other factors. Getting a secured loan for instance will usually help you get lower interest rates as opposed to an unsecured loan. Offering a higher deposit or securing a loan with a guarantor or co-signer will also help.

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Monthly Repayments

You can arrange for a monthly, fortnightly or weekly repayment from a direct debit or salary contribution. It’s important to decide on a monthly repayment schedule that suits your budget and lifestyle. You should also ensure you know what your repayment plan entails be it being inclusive of monthly fees or other charges.
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Loan Term

The repayment terms of private loans can also vary. Some private lenders may require you to repay your loan within a few years, while others may give you up to 20 years to repay the loan. A longer loan term can mean lower monthly payments, but you will end up paying more in interest over the life of the loan. You need to consider a loan term that works for you so you can fit the repayments on time into your budget throughout the entire life of the loan.

Total Repayments

Make sure you can afford your total repayments and meet your loan obligations on time. It’s extremely important that your overall loan amount fits into your budget. If you are borrowing on an individual basis, make sure you account for your other debts, regular expenses and stream of income. If you are a business owner, you need to ensure taking on a loan won’t cause your company cash flow problems on top of your other payables and you have a steady stream of revenue to draw payments from.

Best Private Lenders In Melbourne

If you’re considering a private loan, it’s important to compare several lenders to ensure you’re getting the best deal possible. Private lending can be a great way to obtain funding for a variety of purposes, including home improvement projects, major purchases, and debt consolidation. Talk to our brokers today. We can help you compare a wide range of lenders and loan products to suit your needs.

Bank Loan VS Private Lending

What is the difference between private lenders and traditional banks? Private lenders can set their own interest rates and terms, and are not as affected by the RBA compared to banks. The main benefit of taking out a private loan is that private lenders are willing to work with you if you have bad credit or low income. If you don’t have access to financial statements but do have equity in property, private lenders may be a good option for you. Some examples of what private lenders can finance are purchasing property, refinancing, business loans, and more.
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Private loans often have higher interest rates and require a higher deposit than what you would get from a bank. The repayment terms are also often shorter. But if you need money fast and don’t qualify for traditional financing, private lenders can be a great option. You should also consider that private lenders can change the terms of your loan at any time. This means that your monthly payments could go up unexpectedly. Additionally, private loans are not typically eligible for government programs like income-driven repayment plans.

Contact Us

If you’re looking for private lenders in Melbourne, there are a few things to keep in mind. First, be sure to shop around and compare rates from different lenders. There are many private lending companies out there, so it’s important to find one that offers the best rates and terms for your needs. Contact experienced brokers from Break Free Home Loans to secure the best deal for your financial goals. We understand what it takes to build a strong case for your loan approval. We can submit an application and negotiate with lenders on your behalf.
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Frequently Asked Questions

Before you take out a private loan, it’s important to understand the risks and benefits. The following are some of our most frequently asked questions:

What Is Private Lending?

A private loan is a type of financing that’s provided by a private lender, rather than a bank or other financial institution. Private loans can be used for a variety of purposes, including consolidating debt, financing a large purchase, or covering an unexpected expense. Private lenders offer a variety of loans, including business loans, medical loans, education loans, home loans, and personal loans. They can be a great option if you’re looking for faster finance with less rigid lending criteria.

What Is The Difference Between A Private Lender And A Bank?

Why do borrowers consider private lenders in Melbourne?

Private loans are a popular way to get money that banks oftentimes cannot give. Some borrowers may have been declined by the banks, others might not fit mainstream lenders’ criteria. Additionally, many private loans offer finance for investment purposes and as such, the borrowing criteria is often different from that of a home loan.

The repayment terms of private loans can vary depending on the lender, but they are typically shorter than bank loans. This means that you will have to make your payments more frequently, but you will also pay less in interest over the life of the loan.

How To Apply For A Private Loan In Melbourne?

A private loan can be a great way to get the money you need when you don’t qualify for traditional financing. But it’s important to understand how private loans work before you apply. Here’s a step-by-step guide to help you through the process:

  1. Research private lenders in your area. A qualified broker can help you find suitable lenders and bring different loan products to your attention.
  2. Compare interest rates, repayment terms, and any other fees associated with the loan.
  3. Choose a private lender that you feel comfortable with and apply for a loan.
  4. If you are approved, sign the loan agreement and begin making payments according to the terms of your agreement.

At the end of the day, if you’re considering taking out a private loan, make sure you compare different lenders to find the best rates and terms. And be sure to read the fine print before signing any loan agreement.

Contact our team

We love to hear from each and every one of you. Please feel free to reach out to us today!