Refinancing from Private to Bank Lending

Refinancing from Private to Bank Lending

Refinancing from private to bank is common. Use private lending as a bridge.

This guide answers one of the most common questions about private lending in Australia.

The Short Answer

Refinancing from private to bank is common. Use private lending as a bridge.

Understanding the Details

Private lending in Australia operates within a well-established regulatory and market framework. Understanding the nuances helps you make informed decisions.

Key Points

• Regulatory compliance matters for consumer protection
• Security focus differentiates private from bank lending

• Speed and flexibility are primary benefits
• Higher costs reflect the risk and convenience provided

• Exit strategy is critical for success

For Borrowers

If you're considering private lending:

• Verify lender credentials through ASIC
• Understand all costs including fees and interest

• Have a clear exit strategy
• Read all documentation carefully

• Consider professional advice

For Lenders

If you're considering becoming a private lender:

• Understand when licensing is required
• Conduct thorough due diligence

• Use professional legal documentation
• Assess risks conservatively

• Register mortgages properly

Related Information

How does this compare to bank lending?

Banks have stricter criteria but lower rates. Private lending offers speed and flexibility at higher cost.

What are typical private lending rates?

First mortgage: 9-14% p.a. Second mortgage: 14-20% p.a. Rates depend on LVR and exit strategy.

Who uses private lending?

Borrowers needing speed, those declined by banks, investors, developers, and people with complex income.

Conclusion

Refinancing from private to bank is common. Use private lending as a bridge.

Introducr connects you with verified private lenders across Australia. Post your funding request to receive competitive offers and find the right solution for your needs.