Private Lending for Brokers in Australia: How Innovate Funding Supports You and Your Client

Mortgage and finance brokers in Australia have never had more reason to add private lending to their toolkit. Bank credit policies have tightened, settlement timelines have stretched, and clients with ATO debt, mixed-use security, recent restructures or genuinely strong deals on paper are being declined for reasons that have nothing to do with the merits of the loan. Private lending for brokers in Australia closes that gap: a property-secured, fast, flexible product that brokers can place when the bank cannot.

This guide is written for brokers. It explains exactly how Innovate Funding works with the broker channel, how a deal moves from enquiry to settlement, what a private first mortgage, second mortgage or caveat loan looks like in 2026, and how brokers earn on every settled file. If you have a client a bank has just said no to, this is the article to read.

What Private Lending for Brokers Actually Means in Australia

A private lender is a non-bank credit provider that funds commercial loans against real property, usually on a short to medium-term basis. The funds come from private credit pools, mortgage funds, family offices and high-net-worth investors rather than retail deposits. For a broker, the practical effect is straightforward: you have access to a credit decision-maker, not a queue, and you can place deals that don’t fit a bank’s policy box.

Because almost every private lending Australia facility is for a business or investment purpose, the loans sit outside the National Consumer Credit Protection Act 2009 (NCCP). That gives the lender flexibility on documentation and turnaround. It does not remove broker obligations: you still owe your client a best-interests duty for regulated products, and you still need to verify purpose, security and exit before placing the file. Innovate Funding operates under ASIC oversight and follows the standard professional conduct expected of a non-bank lender in the Australian commercial lending market.

Most broker-introduced deals at Innovate Funding fall into three structures: a private first mortgage (where we hold a first-ranking security against the property), a second mortgage behind an existing bank or non-bank first, or a caveat loan that registers a notice of interest where a second mortgage is not feasible. The right structure depends on the existing security position, the loan amount and the speed required.

How a Broker Deal Moves Through Innovate Funding

The mechanics are deliberately simple. Most broker-introduced files settle in 5–15 business days, and the broker stays at the centre of the relationship the whole way through.

1. Submission. You email a one-page scenario: borrower (entity and director), security property (address and your view on value), loan amount, purpose, exit strategy and any existing encumbrances. No application form, no portal, no triage queue.

2. Indicative offer. Our credit team replies, usually inside 24 hours, with rate, LVR, fees, term and any conditions. If the deal won’t fly, you’ll be told plainly why, with a re-shape suggestion where one exists.

3. Formal application and pricing lock. Your client signs the indicative letter and provides ID, ASIC company extract, and supporting documents (bank statements, contract of sale, ATO portal printout, etc., depending on purpose).

4. Valuation and legal. We instruct a panel valuer and our solicitors prepare loan and mortgage or caveat documents. Independent legal advice is arranged for your client.

5. Settlement and broker commission. Documents are signed, security is registered, funds are advanced, and the broker upfront commission is paid by Innovate Funding from settlement, not deducted from the borrower’s loan.

Across that process the broker always holds the client relationship. We do not market, refinance or cross-sell to your introduced clients. Every renewal, refinance or top-up flows back through you, and that is documented in our broker engagement terms.

When Brokers Should Place a Deal With a Private Lender

Private lending is a strategic tool, not a permanent funding solution. The deals that work best in this channel are time-critical, security-rich and have a clear exit. Five common scenarios cover roughly 80% of broker-introduced files:

• The bank has run out of time. An auction settlement, a contract deposit, a stock buyout or a tax debt with a 14-day deadline. Banks operate on calendar months. Private lenders operate on the deal.

• The bank has declined on policy. Recent restructure, ATO payment plan being repaid, mixed-use or rural-residential security, partly built construction, or a director with a paid default. The asset and exit are sound; bank policy is the only blocker.

• The client cannot evidence income on bank terms. New trading entities, restructured groups, or self-employed borrowers in their first year. no-doc business loans against property equity solve this without falsifying or stretching financials.

• Bridging between transactions. A bridging loan from a private lender bridges the gap between settling a new asset and selling an existing one, without forced-sale pricing on the outgoing property.

• Cash-flow events that need a 6 to 12-month runway. Stock build-up before a contract win, fit-out for a new lease, or working capital while waiting on a BAS refund. A short-term business loan bridges to bank-grade pricing once the financial year closes.

What private lending is not for: long-term working capital, ongoing seasonal funding, or a borrower who has access to bank pricing and the time to wait for it. Use private credit for the event, then refinance to a bank when the underlying issue is resolved.

Loan Types Brokers Most Often Refer to Innovate Funding

Innovate Funding writes a full suite of commercial private credit products. The seven below cover almost every broker-introduced file we see in 2026.

• Private first mortgages. Up to 75% LVR on residential metro security, 65–70% on commercial. Used when the client has equity but no bank facility, or when a bank refinance is six weeks too slow.

• Private second mortgages. Behind an existing bank or non-bank first, with the consent of the first mortgagee. Useful for top-ups where refinancing the first mortgage would trigger break costs or lose a low-rate facility.

• Caveat loans. Fast, lower-cost facilities where a second mortgage is not feasible (e.g. uncooperative first mortgagee). Settle in 48–72 hours where the deal supports it.

• Bridging loans. Short-term, interest-capitalised facilities to bridge the sale-and-purchase gap on residential or commercial property.

• Construction and development finance. From small renovation projects to mid-sized residential and commercial builds. Includes construction loans and land development loans for site acquisition and DA-stage funding.

• No-doc and low-doc business loans. For borrowers who cannot provide tax returns or full financials. The deal stands on the property security and a clear exit.

• Equity release and bad credit business loans. For borrowers using established property equity to fund a business event, including those with paid defaults or current ATO arrangements. See equity release loans and bad credit business loans.

Loan Amounts, LVRs and Indicative Pricing Brokers Need to Quote

Innovate Funding writes private business loans from $100,000 to $20 million across Australia, with terms typically between 1 and 24 months. Pricing is risk-based and depends on three things: LVR, security type, and the credibility of the exit.

As a 2026 broker quoting guide, first-mortgage facilities secured by metro residential property are pricing from around 8.95% p.a.. Second-mortgage and caveat facilities start from around 1.25% per month and rise with LVR and complexity. Specialised, regional or higher-LVR deals are individually risk-priced. Establishment fees are usually 1–2% of the loan amount, plus standard legal and valuation costs payable at settlement.

Maximum LVRs as a broker rule of thumb: 75% on metro residential first mortgage, 70% on second mortgage where the combined LVR remains conservative, 65–70% on commercial and industrial first mortgage, 65% on rural-residential, and case-by-case on specialised assets. Capitalised interest (interest added to the loan balance and repaid at the end) is available on most facilities, which is critical for development and pre-sale scenarios where the borrower has no monthly cash flow during the project.

Real-World Broker Deals at Innovate Funding

$1.4M second mortgage, Sydney medical fit-out

A finance broker introduced a specialist medical practice that had won a 7-year lease in Sydney’s inner west. The bank held the directors’ home on a competitive 5.59% p.a. fixed first mortgage that had three years to run. Refinancing the first to lift cash for fit-out would have triggered $42,000 in break costs. Innovate Funding settled a 12-month second mortgage behind the bank at 70% combined LVR in 9 business days. The broker held the relationship and was paid an upfront commission at settlement. The loan was repaid 11 months later from operating cash flow.

$680K caveat loan, Brisbane ATO clearance

A commercial broker had a client with a $680,000 ATO payment plan that was about to be cancelled, putting the directors at risk of personal liability under the Director Penalty Notice regime. The first mortgagee was unwilling to consent to a second mortgage. Innovate Funding settled a 6-month caveat loan against the directors’ unencumbered investment property in 4 business days. The ATO debt was cleared, the company refinanced to a bank facility within five months, and the broker handled the bank refinance.

$2.3M bridging facility, Melbourne residential downsize

A mortgage broker introduced retiree clients who had purchased a smaller dwelling in Melbourne but had not yet sold their existing family home. The bank wanted the existing home sold first; the clients wanted to move now. Innovate Funding settled a 9-month bridging facility at 60% LVR over both properties with capitalised interest. The existing home sold seven months later and the facility was repaid in full from sale proceeds.

Broker Commission, Submission Pack and Documentation

Brokers receive an upfront commission on every settled deal, structured as a percentage of the loan amount. The exact rate is confirmed at the indicative-offer stage and is paid by Innovate Funding from settlement, separately from the borrower’s loan proceeds. Trail and renewal commissions apply on extensions and refinances back into Innovate Funding products.

A clean broker submission needs five things: borrower name and entity (with ASIC current company extract for company borrowers), security property address with the broker’s estimate of value and any existing encumbrances, loan amount and purpose in plain English, exit strategy with a realistic timeline, and identification documents for all directors and guarantors. Bank statements, BAS or ATO portal printouts, and a contract of sale are added depending on purpose. There is no broker accreditation form to complete in advance: deal-by-deal submission is welcome from any licensed broker or referrer in Australia.

Innovate Funding’s broker engagement is described in detail on the knowledge hub. Brokers who would like the current submission template, pricing matrix and commission schedule should contact our team for the latest pack.

Why Brokers Choose Innovate Funding

• Direct access to credit decision-makers. Your enquiry lands with a credit officer, not a call centre. Indicative terms are issued by the person who will sign off on the file at settlement.

• Broker-friendly terms in writing. Commission, ownership of the client relationship, and renewal flow are documented up front, not negotiated post-settlement.

• Pragmatic credit appetite. Australian-funded private credit, willing to look past ATO arrangements, paid defaults, restructures, mixed-use security and unusual deals when the asset and exit are sound.

• Speed when speed matters. Indicative offers in 24 hours, settlement in 5–15 business days on standard files, 48–72 hours on caveat-only deals where the file supports it.

• Australia-wide coverage. Deals settled in NSW, Victoria, Queensland, WA, SA, Tasmania, the NT and the ACT. Metro, regional and rural-residential security all considered.

Frequently Asked Questions

Do brokers need formal accreditation to submit deals to Innovate Funding?

No. Innovate Funding accepts deal-by-deal submissions from any licensed Australian broker or referrer. There is no advance accreditation form, exam or panel application. Broker engagement terms are confirmed at the indicative-offer stage and signed before settlement.

How much commission do brokers earn on a private lending deal?

Brokers receive an upfront commission as a percentage of the loan amount, paid by Innovate Funding from settlement. The exact percentage is confirmed in the indicative offer and varies by loan size and product. Trail or renewal commissions apply when the loan is extended or refinanced into another Innovate Funding facility.

What deal sizes does Innovate Funding write for brokers?

Loan sizes range from $100,000 to $20 million, secured by Australian real property. The most common broker-introduced deals fall between $250,000 and $5 million on residential and commercial security across all states.

How fast can a private loan settle once a broker submits?

Indicative terms are issued within 24 hours of a clean submission. Standard settlement is 5–15 business days from formal application. Caveat-only facilities can settle inside 48–72 hours where the deal supports it.

Will Innovate Funding contact a broker’s client directly?

No. Brokers hold the client relationship throughout the transaction and on every renewal or refinance. Innovate Funding does not market, cross-sell or solicit refinances directly to broker-introduced clients.

Are private business loans regulated under the NCCP Act?

Loans for genuine business or investment purposes sit outside the NCCP Act 2009, but lenders remain subject to ASIC oversight, contract law, and state property law. Brokers should still confirm purpose and document the business use case before placing a file.

Can brokers refer clients with bad credit or current ATO debt?

Yes. Paid defaults, current ATO arrangements and historical credit events are common in private lending and are accepted on a case-by-case basis where the property security and exit are sound.

The Bottom Line for Brokers

Private lending is the channel where bank-declined, time-critical and policy-edge deals get done. For a broker, it’s the difference between losing a client to a competitor and getting paid an upfront commission on a file the bank could not touch. Innovate Funding has been writing private business loans across Australia since 2016, with a credit team that is comfortable on caveat, second mortgage and first mortgage structures from $100,000 to $20 million.

If you have a client who needs a fast, property-secured private loan, contact our credit team for an indicative offer. For broker engagement terms, the current submission pack and a full product list, the knowledge hub is the best starting point. For background reading on the Australian private lending market for small business borrowers, explore our private lending hub for state-by-state coverage.