Private Lenders Australia

A private lender in Australia is a private capital source that may lend against property security outside standard bank credit policy. The lender may be a private investor, mortgage fund, family office, contributory mortgage group or wholesale funding source. Private property lending is usually short-term and asset-based, so the property value, LVR, title position, loan purpose and exit strategy carry more weight than normal income servicing.

Private lending works by using real property as security for a short-term loan. The borrower provides details of the property, existing debt, amount required, loan purpose and repayment exit. The lender reviews the security, valuation, LVR, legal position and exit before issuing terms. If accepted, lawyers prepare documents and settlement occurs once conditions are met.

Some private lending activity can fall under Australian consumer credit law, while many private property loans are structured for business purposes or wholesale investor scenarios and may not have the same consumer protections as a standard home loan. The loan purpose, borrower type, security and documentation matter. Borrowers should obtain independent legal and financial advice before signing private loan documents.

A non-bank lender is usually an institutional credit provider with policy, servicing assessment and longer-term loan products. A private lender is typically a private capital or mortgage fund source offering short-term, asset-backed loans. Non-bank lending can be cheaper and longer term. Private lending is usually faster and more flexible, but more expensive and exit-driven.

Private property loan rates in Australia commonly sit around 8% to 15% p.a. in 2026 market context, with some scenarios higher. Pricing depends on LVR, security quality, title position, loan term, urgency, borrower profile and exit strength. Fees, legal costs, valuation costs, default rates and exit fees can materially change the true cost, so the headline rate should not be reviewed in isolation.

Clean private property loans can sometimes move in 24 to 72 hours after the lender has the information needed, but that is not guaranteed. Realistic timing depends on valuation, title checks, legal review, first mortgage consent if relevant, borrower documents and whether the exit is credible. More complex scenarios may take several business days or longer.

An exit strategy is the documented way the private loan will be repaid. Common exits include sale of the property, refinance to a bank or non-bank lender, settlement of another asset, completion of a development, incoming business funds or another defined liquidity event. Without a credible exit, a private lender may decline the loan even when there is strong equity.

A caveat loan is a short-term property-secured facility where a caveat is lodged on title to protect the lender's interest. It is often used for urgent business or property funding where speed matters. A caveat is not the same as a registered mortgage. Suitability depends on the title position, loan purpose, LVR, legal advice and exit strategy.

A second mortgage loan is secured behind an existing first mortgage. It can allow a borrower to access additional property equity without refinancing the first loan. The lender assesses the first mortgage balance, combined LVR, consent position, property value, borrower situation and exit. It usually costs more than a first mortgage because the lender sits behind another secured creditor.

Yes, some borrowers use private lenders after a bank decline, but only where the property security and exit strategy are strong enough. A bank decline can happen because of credit history, income documentation, time pressure, property type, valuation issues or policy fit. Private lending can solve some of those problems, but it does not make a weak deal automatically financeable.

Private lending can be secured against residential property, but the loan purpose is critical. A business-purpose loan secured by residential property is different from consumer credit used for personal, domestic or household purposes. Consumer credit rules may apply depending on the borrower and purpose. Legal advice is important before using a residential property as security.

Private lenders usually ask for identification, borrower entity documents, details of the property security, rates notice, current loan statements, title information, valuation or appraisal evidence, loan purpose, amount required, settlement deadline and exit evidence. Some deals require less income paperwork than standard loans but more attention to property, equity and legal position.

The main risks are high cost, short repayment terms, default interest, legal costs, pressure to refinance quickly and possible enforcement action if the exit fails. Private lending should generally be treated as a short-term bridge, not a long-term substitute for bank finance. The exit strategy should be tested before documents are signed.

No. Property Finance Help is not a private lender, broker, credit provider or financial adviser. We provide general information and referral support for property finance enquiries and may connect you with a suitable finance contact where appropriate. We do not lend, approve loans, provide personal credit advice or guarantee outcomes.