Private Lending Australia

Urgent Property Purchase

You've found the right property but your bank approval won't be ready in time. A private lender can fund the purchase within 24–72 hours against clean security — giving you certainty while your bank finance completes.

Bridging Between Buy and Sell

Buying your next home before your current one sells is the most common bridging scenario. A private lender provides short-term funds to bridge the gap — repaid when your existing property settles. We structure the bridge to align with your expected sale timeline.

Property Developer

Development finance often involves multiple tranches and time-critical funding. Private lenders can move faster than traditional construction lenders and consider asset-based security where standard lenders would decline.

Non-Conforming Income

Bank criteria can exclude borrowers with complex income, impaired credit history or non-standard employment — even when their security position is strong. Private lenders assess security first and income second.

Second Mortgage Finance

Private lenders can take a second mortgage position behind an existing bank loan — useful for releasing equity without disturbing the primary lending relationship. LVR thresholds are tighter for second mortgage positions.

Business Cash Flow Bridge

Businesses sometimes need a fast property-secured bridge to cover a working capital gap — a delayed invoice, an ATO payment plan, or a stock purchase ahead of a peak season. Private lenders assess the property security and exit plan — not just the business financials.

Secured by a first mortgage over residential or commercial property. The most common private lending structure — lowest risk for the lender, best rates and highest LVR available. Suitable for bridging, urgent purchases and short-term refinance.

Secured behind an existing first mortgage. Higher cost reflects the increased lender risk in a subordinate position. Useful when the primary lender relationship cannot be disturbed — equity is accessed without refinancing the first loan.

Fast-turnaround funding for development projects where a bank construction loan is not yet in place or has run out. Assessed on the asset's value and the project's exit — sale or bank refinance on completion.

What is private lending and when does it make sense?

Private lending refers to loans provided by non-bank lenders — private individuals, family offices or specialist funds — rather than traditional banks or credit unions. It typically makes sense when speed is critical (standard bank approval timelines are too slow), when the borrower's income or credit profile doesn't meet bank criteria, or when the deal structure is too complex or short-term for a mainstream lender. It is almost always used as a short-term solution with a clear exit plan, such as refinancing to a bank loan or selling the property.

How quickly can a private loan be approved and settled?

Private lenders can often approve and settle a loan within 24–72 hours for straightforward security, compared to weeks for a bank. The speed depends on the complexity of the security, the documentation available and the lender. A broker with established relationships with private lenders can fast-track the process significantly — particularly when the security is clean and the exit strategy is clear. This speed comes at a cost, which is reflected in higher rates and fees.

What security is required for a private loan?

Most private lenders require real property as security — residential, commercial or land. The loan-to-value ratio (LVR) is typically conservative, often up to 65–75% of the property's value, to give the lender a buffer if the borrower cannot repay. Some lenders will take a second mortgage behind an existing bank loan, though LVR thresholds are tighter in that case. The property's location, type and marketability are key factors — lenders prefer assets they could sell quickly if needed.

Are private loan rates higher than bank rates?

Yes, significantly. Private lending rates in Australia typically range from 8–18% per annum or higher, compared to 5–7% for standard residential bank loans. Establishment fees are also common — often 1–2% of the loan amount. The higher cost reflects the speed, flexibility and risk the private lender is taking on. For short-term use with a clear exit, the total cost can be justified — but private lending is not a long-term solution and should always be compared against the cost of other options.

Can I use a private loan as a bridging loan?

Yes — bridging finance is one of the most common uses of private lending. If you need to purchase a new property before your existing property sells, or before your bank refinance settles, a private lender can provide short-term funds to bridge the gap. The exit strategy in this case is the sale proceeds or the incoming refinance. A broker can structure the bridging loan to align with your expected settlement timeline and ensure the costs are manageable against your overall transaction.