Private Mortgage Lender
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Private Mortgage Lender is a non-bank lender, often an individual, fund or company, that lends money secured by a mortgage over property using private capital rather than deposits. Private mortgage lenders typically fund faster than banks, often within days, and price for that speed and flexibility with higher rates and fees. They are common for a second mortgage, a caveat loan or short-term private lending that a bank will not do.
Why Private Mortgage Lender Matters
Private mortgage lenders fill the gap when speed or flexibility matters more than the lowest rate.
- Lends private capital, not deposits
- Funds faster than banks, often in days
- Common for a second mortgage or caveat loan
- Prices for speed and risk with higher rates
- A type of non-bank lender
Common Features of Private Mortgage Lender
- Private or fund capital behind the loan
- Secured by a registered mortgage or caveat
- Short terms, often 1 to 24 months
- Flexible on income and credit
- Higher rates and fees than banks
Official reference: asic.gov.au
What is a private mortgage lender?
A non-bank lender using private capital to lend against property, often for a second mortgage or short-term deal.
Why use a private mortgage lender?
For speed and flexibility when a bank is too slow or will not approve the deal.
Are private mortgage lenders regulated?
Where they lend to consumers they need a credit licence; many are a non-bank lender regulated by ASIC.
Are private mortgage lenders expensive?
Usually dearer than banks, because you are paying for speed, flexibility and higher risk tolerance.
How fast can a private mortgage lender settle?
Often within days, which is the main reason borrowers use them for time-critical deals.