House Flipping Loans Australia

Funding a purchase, renovation and supported sale

House-flipping finance needs to cover the complete project and a realistic repayment plan. A first mortgage may fund an eligible purchase, while a second mortgage may raise funds against a separate existing property. Both facilities need assessment; available equity does not guarantee the deposit, works budget or final loan amount.

Innovate Funding assesses eligible property-secured business-purpose transactions and arranges other suitable loans through lending partners. The legal borrower and actual use of funds determine the appropriate pathway. Review the structure with your solicitor and accountant before committing to a purchase.

Start with borrower and purpose

Buying, renovating and selling a dwelling for profit does not by itself make every loan non-consumer. Residential investment borrowing can be regulated, and a trust label does not establish the legal borrower or credit treatment. See ASIC’s National Credit Code guidance.

If the proposed use is personal home bridging, explore the separate consumer bridging service. Do not choose an ownership structure solely to obtain finance; tax, legal and borrowing consequences need individual advice.

How first and second mortgages may work together

A first mortgage has the first registered mortgage position over its security. A second mortgage sits behind an existing first mortgage and is assessed against combined secured exposure and any existing-lender requirements.

If two properties and two loans are involved, review the debts, guarantees and repayment requirements together. A sale must leave enough proceeds after selling costs and secured payouts. Releasing equity from one property increases its debt and exposure to enforcement risk.

Illustrative equity calculation

Assume a property is accepted at $1,200,000, existing secured debt is $200,000 and a 65% combined LVR ceiling is appropriate for that hypothetical security. Total assessed secured capacity would be $780,000. Subtracting the existing $200,000 leaves $580,000 of potential gross additional capacity before funded interest, fees and other deductions.

The $580,000 is not an assumed net cash advance or an approval. For example, if $30,000 of costs and interest were funded within that additional capacity, the illustrative net amount would be $550,000 before any further deductions. These are assumptions, not current terms or a completed transaction.

Use the actual location and property-type lending limits. Regional, rural or specialised property may require lower limits. Review business equity release for the difference between equity and usable loan proceeds.

Build the full project budget

Purchase deposit, balance, transfer costs and professional advice.
Works quotes, approvals, contractor payments and a funded contingency.
Interest, establishment and brokerage fees, valuation, legal and ongoing costs.
Insurance, holding costs, selling costs and any tax amounts identified by your adviser.
A delay allowance and a supported repayment plan if the sale takes longer or achieves less than expected.

Confirm whether funds are advanced upfront or through assessed stages. Do not assume a renovation budget is automatically available from an acquisition facility. More extensive projects may require construction-finance assessment.

Timing, costs and repayment risk

Indicative terms can generally be provided within 24–48 hours after sufficient information is received. Formal approval and settlement depend on assessment, valuation where required, legal documentation and funding conditions. An indicative proposal should not be treated as permission to make an unconditional commitment.

Compare the full borrowing cost, net proceeds and expected payout. A later sale, higher valuation, extension or bank refinance is not guaranteed. The property offered as security may be at risk if the loan is not repaid.

Frequently asked questions

How much can I borrow for a property flip?

The lender assesses the legal borrower, actual purpose, security location and type, accepted value, existing debt, complete funding need and repayment plan. LVR capacity includes funded interest and fees and is not the same as usable cash.

Can I flip a house without using my own cash?

Do not assume that available equity covers every cost. The lender may require borrower equity, and the complete purchase, works and holding budget must be funded. Existing-property debt and risk increase when equity is borrowed.

How quickly can I get funding approved?

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

Do I need income or payslips to qualify?

Full financial statements are not required for an initial business-loan review. The lender may request further borrower, business-purpose, financial and repayment evidence for the assessed transaction.

Should I buy in my personal name or through a company or trust?

That decision needs tax and legal advice for your circumstances. The legal borrower and actual use of funds affect lending eligibility; a company or trust label should not be treated as a substitute for advice.

Can I refinance instead of selling?

A refinance can be assessed as a proposed exit where there is supporting evidence, but it remains subject to the replacement lender and property at that time. Allow for the possibility that it is delayed or unavailable.

Submit the complete scenario

Send your funding scenario with borrower details, actual purpose, property and purchase information, existing debts, works budget, required net funds, deadline and supported exit.