What private lenders charge in Australia

A $500,000 private first mortgage held for 12 months costs about $56,000 to $78,500 in interest and fees, or 11 to 16 per cent of the loan (our arithmetic from published ranges). A second mortgage costs about $79,200 to $117,500. Lenders' own pages show rates from 8% to 9.7% a year, but those are best-case starting points.

Private and non-bank lenders price on the property, the exit and the speed, not on your trading history. That is why the headline rate on a lender page can start at 8% a year while a real quote on a second mortgage runs at 18% or more, and why fees matter as much as the rate on a loan that lasts a year or less. This guide sets out what lenders publish for rates, fees, LVRs and terms by security position and property type, works the cost of a $500,000 loan against a $1.2m property, and covers when a private lender is worth the price. It is for business-purpose loans only.

What lenders publish for rates and fees

Few private lenders publish a full rate card, and a "from" rate is the best case, not the typical one. The table below lists what the lender pages we opened actually say, with gaps marked. Where a page does not say whether it is a lender or a broker, we say so. Figures are indicative market data, not Ventas offers.

Three things stand out. Starting rates run from 8% to 9.7% a year on first-ranking security, but CCG, the one lender page we found that leads with second mortgages, prices them at 18.75% to 21.75%. Goodland Capital publishes no fee amounts and Secured Lending publishes only a 1% to 2% establishment fee, so the rate alone tells you little. And Bridgit takes its interest in advance and adds it to the loan, with a set-up fee quoted per year. Bridgit's commercial page lists security as commercial, light industrial, mixed use or residential investment property held by a company or trust, with conditional approval in under 72 hours. Bluestone, a non-bank lender, is in the table for contrast: its commercial property loan starts from 7.99% a year on full documentation, which shows what the price of speed and flexibility is. Every page says the final rate depends on the borrower, the security and the exit.

Rates by security position and property type

Because lenders publish so little, we also checked two indicative rate guides from Innovate Funding, which describes itself as a non-bank and private lender but also refers to sourcing from a panel of lenders. They are marketing pages, not rate cards, and the two differ slightly (the April 2026 rates page and the 2026 first mortgage guide). Treat the ranges as a map of the market, not a quote.

The pattern is consistent with the lender pages. A first mortgage over metro residential property is the cheapest security. Commercial, regional and rural property cost more and lend less. A second mortgage costs more than a first, and Innovate Funding's ranges put it roughly 1.5 to 2 times higher, and a caveat loan, priced monthly and held for a few weeks, is the most expensive. Royce Stone Capital, a private lender, puts the rule of thumb at 1.5 to 2.5 times the first mortgage rate for a second.

Fees, minimum interest and what goes wrong at the end

On a loan held for 6 or 12 months, fees are a large share of the cost. These are the ranges published.

Beyond the table, three costs catch borrowers out. First, some facilities carry a minimum interest period, typically three to six months according to Aurelius Private, a broker, so repaying early saves nothing. Second, a default rate: Innovate Funding says 4% to 6% above the headline rate is common if the loan is not repaid by maturity. Third, extension fees, which no lender page we opened quantifies. Government charges add a little: Landgate in Western Australia charges $225.10 to lodge a mortgage, a discharge or a caveat from 1 July 2026, and in Queensland the lender signs a release that must be registered with Titles Queensland before the mortgage is released. Ask for a written schedule that covers a late exit, not only the clean case.

Loan-to-value ratios by property type

Lenders publish a maximum LVR, but the one you get depends on the property. Secured Lending caps first mortgages at 70%, and a second mortgage at 70% combined with the first. Goodland Capital lists 75% on metro residential and 65% on commercial. CCG lends up to 75% on a second mortgage. Innovate Funding shows 60% to 70% on commercial and industrial property, 55% to 65% on rural property and 50% to 60% on a development site without a development approval. We found no lender page that lists a separate LVR for vacant land, so ask. Expect a lower figure than for a house, because vacant land is harder to sell quickly.

When a private lender beats a bank

A private lender costs more than a bank or a property-backed non-bank loan, so it has to earn the difference. It does when time or credit is the problem:

• Speed. Aurelius Private says an indicative decision is usually the same day and formal credit approval takes two to five business days. Bridgit shows 72-hour commercial approvals. Secured Lending says 24 hours on a straightforward deal and three to five business days on a complex one.
• Low documentation or a new business. The lender relies on the property, so a business with no trading history can still borrow if the equity is there.
• An ATO debt or credit issues. Banks often decline. A private lender will look at the equity and the plan to clear the debt.
• A deal with a deadline. A purchase that fails without funds, or a stock opportunity with a hard date.

Banks are mostly not the alternative for this kind of loan: Westpac's bridging loan page, for example, is for owner-occupier purposes only and not for investment property or company and trust lending. If your timeline allows a few extra days, price the cheaper non-bank route first. Our guide to property-backed business loans covers it, and caveat loans explained covers the emergency end.

Business purpose only, and the exit every lender asks for

This page covers business-purpose lending only. ASIC says the credit legislation applies when credit is for personal, domestic or household purposes, and that a loan to an individual to buy residential property for investment is also regulated. It says loans to companies are not subject to the credit legislation. When the security is a home or an investment property, the lender will ask for a signed business purpose declaration, and it has to be true. Borrowing for personal or household use is regulated consumer credit, which this guide does not cover. Ask your lawyer about your own position.

Every private lender then asks one question: how do you repay on the due date? The accepted exits are a sale of the security, a refinance to a cheaper lender once the reason for the private loan is fixed, or a defined cash event such as a settlement. A hope that rates fall is not an exit. If the exit is a refinance, the usual steps are lodged returns, a cleared ATO debt or a seasoned trading record, and a valuation that supports the amount. Read how to refinance a private lender loan to something cheaper and how a private or non-bank business loan against property works.

Financing a private lender loan, and what it costs

Ventas is a broker, not a lender. Private and non-bank lenders will fund a property-backed business loan when four things line up: enough equity (a combined LVR under 70% to 75%), a clear exit, a business purpose, and security the lender can sell. Appetite narrows fast on regional or rural property, vacant land and a thin equity position. Here is a worked example for a $500,000 loan against a $1.2m property. Illustrative only, subject to lender assessment.

And what each position costs over its term, from the published ranges above:

A first mortgage here costs 11% to 16% of the loan over the year, a second mortgage 16% to 24%, and a caveat loan used for six months 11% to 21%. Discharge fees and any extension or default fees are extra. A property-backed loan or a second mortgage business loan from a bank or non-bank can cost less if you have the days. To get a number from Ventas, send the property address and value, what is owed on it, the loan amount, what the funds are for and your exit.

This is general information only and not financial, credit, or tax advice. Figures are indicative market data from the sources listed, not Ventas offers, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.