Buyers use paintings to pay for homes

Homebuyers who are struggling to secure a mortgage have been given another finance option: using artwork to borrow up to $1 million.

Short-term lender Assetline has announced an alliance with auction house Mossgreen, which it said “strengthens Assetline’s position as the leading lender against art”.

Assetline also lends against gold, silver, jewellery, diamonds, antiques, luxury watches and fine wine collections.

The company lends up to 70 per cent of the wholesale value in amounts ranging from $1,000 to $1 million.

Co-founder Nick Raphaely said borrowers benefit from personal asset loans because they are not based around property.

“They don’t require income checks or credit checks, and the borrower won’t be ruled out simply because of an impaired credit history,” he told Real Estate Business's sister publication The Adviser.

“In addition, the loans are non-recourse to the borrower, which makes them very attractive.”

Mr Raphaely said personal asset loans could also be used to make up shortfalls in property deals.

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