Private Mortgages occur when a private investor invests directly in a mortgage over real estate. There is no pooled fund, no managed investment scheme, no debenture scheme, no fund manager whose liquidation will cause loss to the investors in the scheme. Instead the investor loans directly to the borrower.
Private mortgage lenders are assisted by various service providers. These are the:
- Private Mortgage Broker – who performs broker due diligence and introduces the lending opportunities;
- Valuer – who values the security;
- Mortgage Lawyer – who drafts the security documents, performs legal due diligence, provides certification as to title and attends settlement on PEXA;