Working with a non-bank lender
When a main bank is unable to lend funds, or when client circumstances aren’t favourable, a non-bank lender like DBR can provide a short-term property finance solution. This provides time to consolidate, move a project forward and complete it. This can allow time to finance back to the bank, or obtain sales at market value.
With many non-bank lenders in the market, it’s important to understand that there can be some risk associated with non-bank lending. As a borrower, it’s important to ask some specific questions to understand who you’re dealing with so that you can make the best decision:
- How many mortgagee sales has the company completed? – This will gauge their lending standards and the likelihood of the lender forcing a sale.
- Who are the owners? Are they identified on their website? Are they reputable and do they have proven history?
- How is the lender funded?
- Are they lending their own money? – If so, they’re more likely to provide a solution they know will be beneficial for both parties.
- Do they have testimonials from others they’ve helped?
Knowing this information is paramount when seeking a solid lending solution.