Both private lending and traditional banking are regulated prudentially in Australia, but by different government regulators. Private lending is in certain cases regulated by the Australian Securities & Investments Commission (“ASIC”), while the banks are regulated by the Australian Prudential Regulation Authority (“APRA”).

There is an opertunity for savvy investors to invest in private commercial security backed mortgages for high fixed rate returns over a range of loan terms.

A private mortgage is funding from a private lender instead of a bank or non-bank lender direct to the borrower. The borrower offers real estate as security for the loan via a publicly recorded (sometimes non-publicly recorded) mortgage. The loan is secured by a mortgage that is evidenced by an original loan agreement. The mortgage over real property secures the loan agreement in the event of a default by the borrower. This is similar to bank lending but funds are provided by a private individual more directly to a borrower.

Returns through private mortgages are typically higher than those through investing in commercial bank bills / loans that typically return 3.5 – 4% above the Reserve Bank of Australia cash rate.

Commercial borrowers taking private mortgages (secured by a first registered mortgage against real property assets) typically accept interest rates of between 8% per annum and 18% per annum. Interest rates on private mortgages against a second registered mortgage can be even higher.

Current returns from 1st Mortgages are around 8.5% p.a. 

Current returns from 2nd Mortgages returns from 14% p.a.

If you are a Sophisticated Investor looking for a low risk, high return, on your valuable investment capital, consider becoming a Private Lender

We can source deals for you including managing your interest and providing a suitable ‘Exit Strategy’.

Typically borrowers that have some past credit issues (defaults, etc..), have difficulty providing the evidence of income (such as business owners that have not done their financials) or the real estate that they are purchasing or refinancing is unusual (unfinished house, rural, etc…).

Furthermore, some developers come to private mortgage lenders to increase their loan to value ratio or speed up the loan process to get their project underway.

Anyone can be a private lender. If you are looking for great returns and low risk and have funds to invest private lending could be a good investment choice for you.

Your funds are secured by a registered mortgage over real property in the same way that the banks and other lenders take a mortgage. All of the mortgage documents including the security registration are done by solicitors that specialise in these types of transactions. The solicitor prepares the documents to ensure that your mortgage is secured the best possible way. All of the solicitors’ fees for preparing and registering the documents and mortgage are paid for by the borrower.

Property development projects are vetted and valued appropriately.

• Invest in mezzanine funding for development projects and sites including:
• Short-to-medium term funding, usually with a clearly defined exit strategy;
• Equity Co-investment; and
• Equity (or preferred equity) co-investments in development projects or land bank site or upside via development or value adding activities.

We believe everyone should be able to invest in property development and gain the rewards that this can bring.

We provide the opertunity for everyone to invest in Australian property developments where opportunities arise. Typical opportunities include:

– Equity participation for property development projects
– Short term loans

You choose when and where you invest and can do so for as little as $5,000 with no upper limit.