first mortgage private lending australia property secured loan funding

First mortgage loans Australia

Innovate Funding provides property-secured first mortgage finance from $50,000 for eligible business purposes. We directly fund suitable transactions and may arrange other facilities through private and non-bank lending partners.

A first mortgage places the lender in the first registered mortgage position over the security property. Funding may support business property acquisitions, refinancing existing business debt or releasing equity for verified business expenditure.

Submit your funding scenario with the property details, existing debt, amount required, business purpose and proposed repayment strategy.

First mortgage lending at a glance

Loan amounts: From $50,000, with the maximum assessed individually.
Residential property: Up to 70% in NSW, Queensland and the ACT. Lower ceilings apply in other locations.
Commercial property: Up to 60% in NSW, Queensland and the ACT. Lower ceilings apply in other locations.
Loan terms: Typically 3–12 months; longer terms considered individually.
Indicative terms: Generally within 24–48 hours after sufficient information is received.
Loan purpose: Eligible business-purpose borrowing only.

These parameters are indicative. Lower lending limits may apply depending on the property, location, accepted valuation and transaction. Funded interest and fees must be allowed for within the assessed facility.

What is a first mortgage loan?

A first mortgage loan is secured against property, with the lender holding the first registered mortgage position.

When an existing mortgage is being refinanced, its payout and discharge requirements form part of the proposed settlement. The new facility needs to cover any agreed debt payouts, funded costs and additional business funds required.

First mortgage lending differs from a second mortgage, which sits behind an existing first mortgage. We assess which structure may fit the funding requirement, security and repayment strategy.

Compare private first mortgage lenders

When comparing private first mortgage lenders, ask who will provide the funds, which existing debts must be discharged and how much money will remain for the business after costs. A larger gross loan does not necessarily produce a larger net advance.

Compare written proposals for the same net funds and intended repayment date. Check the accepted security, loan term, total interest and fees, minimum-interest provisions and outstanding conditions. Our private lending rates and costs guide explains the cost comparison, while how we fund loans explains direct funding and partner-arranged facilities.

What can the funds be used for?

Eligible business purposes may include:

Working capital, stock, equipment and operating expenses.
Refinancing an expiring or unsuitable business facility.
Paying verified business tax debt or other business liabilities.
Purchasing property for an eligible business purpose.
Releasing property equity for business expansion.
Short-term funding pending a supported sale, refinance or business receipt.

The actual use of funds must qualify for our business-purpose lending service. Offering residential property as security or holding an ABN does not, by itself, establish eligibility. For a refinance example, see the Coogee commercial debt consolidation case. For a settlement gap, see the Mittagong first mortgage bridging case.

For related options, explore secured business loans and business equity release.

How we assess a first mortgage application

We consider:

Property security: Type, location, condition, marketability and accepted valuation.
Existing debt: Current balances, facility limits and liabilities requiring repayment.
Funding requirement: Both the gross facility and net funds needed.
Business purpose: The proposed expenditure and evidence supporting it.
Borrower circumstances: Relevant business, ownership and credit information.
Repayment strategy: The expected source, timing and amount available to repay the facility.

Potential exits may include a property sale, refinance or verifiable business receipts. The proposed source needs to cover the loan, interest and relevant costs within the agreed term. A proposed refinance remains subject to the replacement lender’s approval.

Full financial statements are not required for an initial deal assessment. Formal approval requirements depend on the lender and transaction. Read more about reduced-documentation business lending.

How LVR, interest and fees affect the funds available

Loan-to-value ratio (LVR) expresses the assessed secured exposure as a percentage of the property value accepted by the lender.

Eligible residential property may be considered up to 70% LVR in NSW, Queensland and the ACT, 65% in WA, Victoria and South Australia, 55% in the NT including Darwin, and 50% in Tasmania.

Eligible commercial property may be considered up to 60% LVR in NSW, Queensland and the ACT, 55% in WA, Victoria and South Australia, 45% in the NT including Darwin, and 50% in Tasmania. Check the LVR limits by state and territory for the property address.

Interest and fees funded within the loan use part of the available borrowing capacity. Existing-debt payouts and settlement deductions also affect the net funds available.

Costs may include interest, establishment fees, brokerage, valuation costs, legal expenses and settlement or discharge charges. Minimum-interest and early-repayment provisions depend on the loan agreement.

Ask for the gross facility, existing-debt payouts, funded costs, net advance and expected repayment amount to be shown separately.

Our LVR and borrowing limits guide explains the state limits and how capitalised or prepaid interest affects capacity.

Direct funding and specialist lending options

Innovate Funding directly funds suitable property-secured business-purpose loans.

When a transaction falls outside our internal lending scope, or our own funds cannot provide the amount or structure required, we may broker it to an appropriate private or non-bank lender.

We generally arrange construction finance through specialist lending partners. Requirements depend on the project, security and proposed funding structure.

We explain the proposed funding arrangement, lender requirements and relevant costs before you commit.

Previous first mortgage transactions

Coogee, NSW

A $4,000,000 first mortgage for commercial debt consolidation, with a 12-month term and pricing of approximately 8.5% per annum.

Read the Coogee case study.

Broadbeach, Queensland

A $500,000 first mortgage transaction that settled in three business days.

Read the Broadbeach case study.

Mittagong, NSW

A first mortgage bridging transaction assessed at 67.5% LVR.

Read the Mittagong case study.

These are individual historical transactions. Their pricing, lending limits and settlement times do not establish the terms available for another application.

How the first mortgage process works

Scenario review: We assess the business purpose, security, existing debt, amount required and proposed exit.
Indicative terms: Suitable scenarios may receive indicative terms within 24–48 hours after sufficient information is received.
Assessment and valuation: The lender completes its assessment and any required property valuation.
Documentation: Loan documents, relevant advice and settlement requirements are addressed.
Approval and settlement: Funding proceeds once formal approval is in place and the funding conditions are satisfied.

Tell us your required settlement date at the outset so we can assess whether it is achievable.

Frequently asked questions

What is the maximum LVR for a first mortgage?

Indicative ceilings for eligible metropolitan security range from 50% to 70% on residential property and 45% to 60% on commercial property. The security address, accepted valuation and lender assessment determine the applicable limit.

What LVR is available for commercial property?

Do I need full financial statements?

Full financial statements are not required for an initial deal assessment. Requirements for formal approval depend on the lender and transaction. Evidence of the business purpose, property security, existing debts and proposed repayment strategy is still required.

How quickly can a first mortgage loan settle?

Indicative terms can generally be provided within 24–48 hours after sufficient information is received. Formal approval and settlement depend on lender assessment, any required valuation, legal documentation and satisfaction of funding conditions.

Can I get a first mortgage loan with bad credit?

Possibly. Credit issues are assessed alongside the business purpose, property security, existing liabilities and repayment strategy. A bank decline or adverse credit history does not automatically determine the outcome. Approval is not guaranteed.

Can I repay a first mortgage loan early?

Early repayment depends on the loan agreement. Minimum-interest periods, notice requirements, discharge fees and other charges may affect the payout. Ask for the applicable terms and an estimated payout before accepting a facility.

Request indicative first mortgage terms

Submit your scenario with the property address, estimated value, existing secured debt, net funds required, business purpose, funding deadline and proposed exit.

Innovate Funding can then review the transaction and explain the potential structure, information required and next steps.

Call 02 8919 3639 or email deals@innovatefunding.com.au.