First Mortgage Loans Australia for Business and Investment

Assurity Capital provides private first mortgage loans secured by Australian property for eligible business and investment purposes.

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A private first mortgage may provide short-term property-backed finance for a purchase, refinance, bridging requirement, commercial opportunity, property development or urgent settlement. It may suit borrowers who have acceptable property security and a clear exit strategy but require an alternative to a conventional bank process.

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Assurity Capital considers first mortgage loans from $50,000, including multi-million-dollar facilities. Indicative terms may range from 3 months to 3 years, with LVRs of up to 75% considered depending on the property, location and complete transaction.

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All finance is subject to assessment, acceptable security, legal documentation and approval. Assurity Capital does not provide regulated consumer loans or owner-occupied home loans. Our private lending is for non-regulated business and investment purposes only.

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Explore First Mortgage Loans by Location

Assurity Capital considers eligible private first mortgage lending across Australia. Select a location to explore private property finance in your state or city.

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First Mortgage Loans New South Wales

Private first mortgage lending across Sydney, Newcastle, Wollongong, the Central Coast and regional NSW.

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Explore First Mortgage Loans NSW

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First Mortgage Loans Victoria

Private first mortgage finance across Melbourne, Geelong, Ballarat, Bendigo and eligible regional Victorian locations.

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Explore First Mortgage Loans Victoria

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First Mortgage Loans Queensland

Private first mortgages across Brisbane, the Gold Coast, Sunshine Coast and eligible regional Queensland locations.

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Explore First Mortgage Loans Queensland

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First Mortgage Loans Western Australia

Private first mortgage lending across Perth, Fremantle and eligible regional Western Australian locations.

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Explore First Mortgage Loans Western Australia

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First Mortgage Loans South Australia

Private property finance across Adelaide and eligible regional South Australian locations.

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Explore First Mortgage Loans South Australia

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First Mortgage Loans Australian Capital Territory

Private first mortgage finance across Canberra and the Australian Capital Territory.

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Explore First Mortgage Loans ACT

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First Mortgage Loans Tasmania

Private first mortgage lending across Hobart, Launceston and eligible regional Tasmanian locations.

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Explore First Mortgage Loans Tasmania

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First Mortgage Loans Northern Territory

Private property finance across Darwin and eligible Northern Territory locations.

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Explore First Mortgage Loans Northern Territory

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What Is a First Mortgage Loan?

A first mortgage is a loan secured by a first-ranking registered mortgage over property.

The first mortgage lender has priority over later-ranking mortgage lenders. If the borrower defaults and the property is sold, the first mortgage lender is generally repaid from the available sale proceeds before a second mortgage lender.

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A private first mortgage is provided outside a traditional bank lending process. It is commonly used for short-term business, investment, property, bridging, refinancing and development requirements.

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How Does a Private First Mortgage Work?

A private first mortgage is secured against acceptable real estate. The lender assesses the value and type of property, existing encumbrances, requested loan amount, purpose of funds and proposed exit strategy.

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The process normally begins with a summary containing:

• The borrower or borrowing entity.

• The property offered as security.

• Its estimated value and location.

• Existing mortgages, caveats or other encumbrances.

• The amount required.

• The business or investment purpose.

• The required loan term.

• The proposed exit strategy.

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If the initial scenario appears suitable, further property, borrower and transaction documents may be required before formal approval and settlement.

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What Can a First Mortgage Loan Be Used For?

Private first mortgage finance may be considered for a range of non-regulated business and investment purposes.

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Property Purchases and Settlements

A first mortgage loan may fund an eligible residential investment, commercial, industrial, development or land purchase where a short-term private finance solution is required.

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Refinancing Existing Business or Property Debt

A borrower may refinance a bank loan, private mortgage, caveat loan or another eligible business or investment facility into a first-ranking private mortgage.

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Business Cash Flow and Working Capital

Property-backed business finance may provide capital for stock, inventory, suppliers, payroll, contracts, expansion or another defined commercial requirement.

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Bridging Finance

A first mortgage bridging loan may provide short-term funding between a property purchase, sale, settlement, development milestone or refinance.

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Property Development and Construction Completion

Private first mortgage funding may assist eligible developers with acquisitions, remaining construction costs, project completion or other development-related requirements.

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ATO and Creditor Payments

Eligible businesses may use first mortgage finance to address ATO liabilities, creditor payments or commercial obligations while implementing a longer-term repayment or refinance strategy.

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Investment and Commercial Opportunities

A first mortgage loan may help an investor or business owner complete a time-sensitive transaction where suitable property security and a credible exit are available.

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Types of Private First Mortgage Loans

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Residential Investment First Mortgages

A residential investment first mortgage is secured against an eligible house, apartment, townhouse or residential investment property.

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Assurity Capital does not provide consumer-purpose owner-occupied home loans. Residential property may only be considered as security for an eligible business or investment loan.

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Commercial First Mortgage Loans

Commercial first mortgage finance may be secured by eligible offices, retail premises, warehouses, industrial facilities, medical suites or other commercial property.

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It may be used for commercial property acquisition, refinancing, working capital, business expansion or another approved commercial purpose.

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Industrial Property First Mortgages

Eligible industrial property may be used as security for private first mortgage finance, subject to its location, value, marketability, existing debt and the proposed transaction.

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Vacant Land and Development-Site Mortgages

Vacant land and development sites may be considered where the property, requested LVR, intended use and exit strategy satisfy lending requirements.

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Construction First Mortgages

A construction or completion loan may be secured by a first mortgage over a development property. Assessment may include the current property value, completed works, remaining costs, project feasibility and expected exit.

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Bridging First Mortgages

A bridging first mortgage provides short-term finance secured in first position while the borrower completes a sale, refinance or another identified transaction.

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Private First Mortgage vs Bank Mortgage

A bank mortgage and private first mortgage can both be secured in first position, but they may serve different borrower requirements.

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Banks generally assess applications using standard servicing criteria, current financial statements, credit policies and established approval processes. This can suit conventional, long-term lending.

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Private first mortgage lenders tend to focus more closely on:

• Property security and marketability.

• Available equity and LVR.

• The commercial purpose of the loan.

• The required timeframe.

• The proposed exit strategy.

• The complete circumstances of the transaction.

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Private finance may be relevant where a short-term solution is required and the transaction does not fit a mainstream lender’s policy or timing.

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Private lending may involve higher rates and fees than bank finance. It should only be considered after evaluating the costs, risks and available alternatives.

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First Mortgage vs Second Mortgage

A first mortgage has first-ranking security over a property. A second mortgage ranks behind an existing first mortgage.

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A first mortgage may be appropriate where:

• The property is unencumbered.

• An existing mortgage will be refinanced and discharged.

• The new lender will hold first-ranking security.

• The required amount can be supported by the property and acceptable LVR.

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A second mortgage may be considered where the borrower wants to retain an existing first loan while accessing additional equity.

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Mortgage ranking affects lender risk, pricing, available LVR and the structure of the transaction.

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First Mortgage Loan Amounts, Terms and LVR

Assurity Capital’s published private first mortgage parameters include:

• Loan amounts from $50,000, including multi-million-dollar facilities.

• Indicative terms from 3 months to 3 years.

• LVRs of up to 75%, depending on property type, location and transaction.

• Residential investment, commercial, industrial and vacant-land security.

• Interest-only or capitalised-interest structures where appropriate.

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These are indicative parameters, not guaranteed terms. The final loan amount, LVR, term, rate, fees and repayment structure depend on the individual assessment.

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How Is First Mortgage LVR Calculated?

The loan-to-value ratio compares the proposed loan amount with the accepted value of the security property.

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For example, a $600,000 first mortgage secured against a property valued at $1,000,000 represents an LVR of 60%.

The calculation is:

Loan amount ÷ property value × 100 = LVR

The maximum acceptable LVR can vary according to the property type, location, marketability, loan purpose and exit strategy.

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What Property Can Secure a First Mortgage?

Eligible security may include:

• Residential investment property.

• Commercial property.

• Industrial property.

• Mixed-use property.

• Vacant land.

• Development sites.

• Partially completed developments.

• Completed residual stock.

• Other acceptable Australian real estate.

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Property acceptance is not automatic. Assurity Capital assesses the location, condition, value, marketability, current use and proposed loan structure.

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Do First Mortgage Loans Require a Valuation?

A valuation may be required to establish the property’s value and support the proposed LVR.

In some lower-LVR scenarios, Assurity Capital may be able to assess the property without an upfront formal valuation. Whether a valuation is required depends on the property, available information and complete transaction.

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What Is an Exit Strategy?

An exit strategy explains how the first mortgage loan will be repaid at the end of its term.

Potential exit strategies include:

• Sale of the security property.

• Sale of another property or asset.

• Refinance through a bank or non-bank lender.

• Completion and sale of a development.

• Refinancing after updated financial information becomes available.

• Repayment from an identifiable business or settlement event.

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A credible exit strategy is essential. Property equity does not remove the need for a realistic repayment plan.

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Who May Use a Private First Mortgage?

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Business Owners

Business owners may seek first mortgage finance for working capital, expansion, stock purchases, ATO liabilities, creditor payments, refinancing or commercial opportunities.

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Property Investors

Investors may use private first mortgage finance for acquisitions, settlements, bridging, improvements or refinancing eligible investment debt.

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Property Developers

Developers may require property-backed funding for acquisitions, construction completion, residual stock, development costs or an upcoming settlement.

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Self-Employed Borrowers

A self-employed borrower may have acceptable property security and a commercially viable transaction but financial documentation that does not fit a standard bank process.

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Mortgage and Finance Brokers

Brokers may submit eligible first mortgage scenarios where a client requires short-term private property finance outside mainstream bank criteria or timing.

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Accountants, Lawyers and Professional Referrers

Professional advisers may refer eligible clients requiring first-ranking property finance for business, investment, settlement, tax or creditor-related purposes.

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How to Apply for a First Mortgage Loan

Submit the Initial Scenario

Provide the security property, estimated value, current mortgage position, amount required, purpose of funds, required timeframe and proposed exit strategy.

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Initial Assessment

Assurity Capital reviews the transaction to determine whether it may fit the available private lending parameters.

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Supporting Information

If the scenario can progress, Assurity Capital may request property records, existing loan statements, ownership details, company or trust documents, valuation information and evidence supporting the purpose and exit.

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Indicative Terms and Formal Approval

Indicative terms may be issued following the initial assessment. They do not constitute final approval. Finance remains subject to satisfactory due diligence, legal documentation and final approval.

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Documentation and Settlement

Once all requirements are satisfied, loan and mortgage documents can be prepared for execution and settlement.

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Actual timeframes depend on the property, documents, valuation, legal work and complexity of the transaction.

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First Mortgage Loans Available Australia-Wide

Assurity Capital considers eligible private first mortgage lending throughout Australia.

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New South Wales

Sydney, Newcastle, Wollongong, Central Coast and eligible regional NSW locations.

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Victoria

Melbourne, Geelong, Ballarat, Bendigo and eligible regional Victorian locations.

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Queensland

Brisbane, Gold Coast, Sunshine Coast and eligible regional Queensland locations.

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Western Australia

Perth, Fremantle and eligible regional Western Australian locations.

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South Australia

Adelaide and eligible regional South Australian locations.

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Australian Capital Territory

Canberra and surrounding ACT locations.

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Tasmania

Hobart, Launceston and eligible regional Tasmanian locations.

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Northern Territory

Darwin and eligible Northern Territory locations.

The inclusion of a location does not guarantee that a property or loan will be accepted. Each scenario is assessed individually.

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Risks and Costs of Private First Mortgage Loans

A private first mortgage is secured against property. If the borrower does not meet the agreed obligations, the security property may be at risk.

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Private finance may also involve higher rates and fees than conventional bank lending.

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Before proceeding, borrowers should understand:

• The interest rate and total interest cost.

• Establishment, legal, valuation and settlement fees.

• The loan term.

• Interest-payment arrangements.

• Default interest and enforcement provisions.

• The property being provided as security.

• The proposed exit strategy.

• The consequences if the exit is delayed.

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Independent legal, financial and tax advice may be appropriate before entering a private mortgage.

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Frequently Asked Questions About First Mortgage Loans

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What is a private first mortgage loan?

A private first mortgage is property-backed finance provided by a private or non-bank lender. The lender holds first-ranking mortgage security over the property.

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What is first mortgage security?

First mortgage security gives the lender first-ranking priority over the secured property ahead of later-ranking mortgage lenders.

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How much can I borrow with a first mortgage?

The available amount depends on the property value, acceptable LVR, loan purpose, location and exit strategy. Assurity Capital considers first mortgage loans from $50,000, including multi-million-dollar facilities.

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What LVR is available for a private first mortgage?

Assurity Capital may consider first mortgage LVRs of up to 75%, depending on the property type, location and complete transaction.

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Can I get a private first mortgage with bad credit?

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Credit history may be considered, but it is not the only factor. The property security, available equity, purpose of funds, total debt and exit strategy are also important. Bad credit does not guarantee approval or decline.

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Can a first mortgage be used for business finance?

Yes, a private first mortgage may provide property-backed funding for an eligible business purpose, including working capital, expansion, ATO liabilities, creditor payments or refinancing.

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Can a first mortgage be used as bridging finance?

Potentially. A first mortgage bridging loan may provide short-term finance before a property sale, settlement, development completion or refinance.

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Can commercial property secure a first mortgage?

Eligible commercial and industrial property may be accepted, subject to its value, location, marketability, existing debt and the complete transaction.

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How quickly can a private first mortgage settle?

Timeframes depend on the property, valuation, supporting documents, legal work and transaction complexity. Indicative terms may be provided quickly, but settlement timeframes cannot be guaranteed.

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Does Assurity Capital provide owner-occupied home loans?

No. Assurity Capital does not provide regulated consumer loans or owner-occupied home loans. Its private lending is for eligible business and investment purposes.

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Discuss Your First Mortgage Scenario

If you require a private first mortgage for an eligible business, investment, property or development purpose, Assurity Capital can review your scenario confidentially.

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Provide the property address, estimated value, existing debt, amount required, purpose of funds, required timeframe and proposed exit strategy to begin an assessment.