The real cost of refinancing, worked out first
A lower rate only helps if it outweighs what it costs to move. Here is what goes into that sum.
ReadPrivate lending
Funding when
timing matters.
Short-term funding for when the timing matters more than the rate.
In short
How it
works.
65%Typical maximum, of property value, first mortgage
A settlement about to fall over, or a deal the banks won't move on in time. Private funding is assessed on the security and on how you'll repay it, through a sale, a refinance to a bank or a project reaching completion, rather than on your full serviceability.
It costs more than a bank. That's the trade-off for speed and flexibility, so we agree the exit before you draw the money, and tell you plainly whether the premium is worth paying.
What we cover
What we
arrange.
- Bridging finance
- Covering the gap between buying one property and selling another, or between settlement and a bank refinance.
- Caveat loans
- Very short-term funding secured by a caveat over property rather than a registered mortgage, for genuinely time-critical needs, at a higher cost.
- Settlements that can't wait
- When a bank approval won't arrive before the settlement date and penalties, or the deposit, are on the line.
- Deals outside bank policy
- Complex income, recent credit issues or unusual security, where there's a clear and realistic way out.
- Asset-backed business funding
- Short-term capital for a business need, secured against property and repaid from a sale, a refinance or a known event.
Our approach
How we
go about it.
The exit comes first
We agree how the loan gets repaid before you draw a dollar, and test whether that exit is realistic.
We size it honestly
You borrow what the exit supports, not the most a lender will advance, because every extra month costs more.
The way out starts early
Where the exit is a bank refinance, that application starts alongside the private loan, not after it.
Typical terms
What it usually
looks like.
General market practice, not an offer or a guarantee. What's available depends on the security, the structure and your position, and is subject to assessment.
- Maximum lending
- Commonly up to 65% of the property value on a first mortgage
- Loan term
- Months rather than years; commonly 3 to 12 months
- Interest
- Often prepaid or capitalised at settlement rather than paid monthly
- Assessment
- The security and the exit, rather than full serviceability
- Cost
- Higher rates and fees than a bank, in exchange for speed and flexibility
Getting ready
What you'll
likely need.
- Details of the property offered as security
- A clear exit, and evidence it's realistic
- Your deadline, and the contract if it's a purchase
- Identification for every borrower and guarantor
General market practice, not a requirement or guarantee. What any particular lender asks for varies by product, security and borrower.
When speed matters more than the rate: a settlement about to fall over, something that won't wait, or a case where you can clearly see the way out but the usual serviceability test doesn't.
On the security and the exit, rather than your full serviceability. The lender's real question is how they get paid back: a refinance across to a bank, a sale, or a project reaching completion.
More than a bank. That's the trade-off for speed and flexibility, and it's why the exit has to be settled before you draw the money rather than figured out later.
Enquire
Tell us about
the deadline.
What the money is for, what's securing it and when you need it is enough to start.
Sent
Your enquiry is with us.
Expect a reply within one business day. If it's time-critical, call (03) 9988 1452.