Private Lending Melbourne: $300,000 First Mortgage Secured by Melbourne CBD Commercial Property

Assurity Capital
2 days ago
3 min read

Private lending in Melbourne continues to play a critical role for borrowers who need fast, flexible finance solutions — particularly when dealing with urgent ATO obligations or complex financial scenarios.

At Assurity Capital, we recently settled a $300,000 first mortgage private loan secured by a commercial retail property in the heart of the Melbourne CBD. This transaction is a strong example of how private lending Melbourne solutions can provide certainty, speed and structure when traditional banks are not suitable.

The Scenario: Urgent ATO Debt Resolution

Our client required funding to clear outstanding ATO debt obligations.

ATO liabilities can escalate quickly due to penalties, interest and enforcement action. Traditional lenders often:

Decline applications with outstanding tax debt
Require lengthy financial verification
Impose strict servicing requirements
Take weeks or months to approve funding

In situations like this, timing is critical.

Through our private lending Melbourne solution, we structured a first mortgage loan of $300,000, secured against a high-quality CBD commercial asset.

The Security: Melbourne CBD Commercial Property

The loan was secured by a two-storey retail premises located in a well-regarded Melbourne CBD laneway precinct.

A recent independent valuation assessed the property at $1,950,000.

This provided:

✔️ Extremely low leverage (~15% LVR)
✔️ Strong equity buffer
✔️ Prime CBD exposure
✔️ Quality commercial security

Low loan-to-value ratios are a key strength in private lending. In this case, the borrower retained significant equity while resolving urgent financial pressure.

Why Private Lending Melbourne Was the Right Solution

When clients approach traditional banks with ATO arrears, the outcome is often:

Application declined
Credit profile impacted
Enforcement action escalated

Private lending Melbourne offers a different framework.

1. Asset-Based Assessment

Unlike banks that prioritise income servicing models, private lenders focus heavily on:

The quality of the security property
Equity position
Exit strategy
Overall risk profile

In this scenario, the strong CBD commercial asset and low LVR made the transaction straightforward to structure.

2. Speed of Execution

ATO matters require urgency.

Private lending Melbourne solutions can typically:

Issue indicative terms quickly
Move to formal approval without lengthy credit committees
Settle in significantly shorter timeframes than major banks

Speed reduces financial stress and prevents compounding tax penalties.

3. Flexible Structuring

Private lending allows for:

Short-term facilities
Interest-only options
Clear exit strategies (sale, refinance, restructuring)
Solutions where tax debt exists

For borrowers who simply need time to stabilise cash flow or refinance later, private lending acts as a strategic bridge.

Understanding Private Lending in Melbourne’s Commercial Market

Melbourne’s CBD retail and commercial market has shown continued stabilisation and recovery, particularly in core retail precincts.

Well-positioned assets in central locations continue to attract investor interest, particularly where:

Foot traffic is improving
Office worker return supports retail trade
Tourism is strengthening

For borrowers with quality commercial property, private lending Melbourne can unlock liquidity quickly — even when banks are restrictive.

Who Uses Private Lending Melbourne?

Private lending is commonly used by:

Business owners with temporary cash flow pressure
Borrowers with ATO or statutory debt
Investors needing short-term bridging finance
Clients awaiting refinance approval
Property owners with strong equity but complex income structures

It is not a long-term replacement for traditional banking — but it is an extremely effective strategic tool.

The Importance of Low Leverage

In this transaction, the loan represented only approximately 15% of the property’s value.

Low LVR private lending provides:

Greater risk mitigation
Lower stress on the asset
Clear refinance pathways
Enhanced lender confidence

For borrowers, it also preserves long-term equity and investment flexibility.

A Strategic Exit

Private lending works best when there is a defined exit strategy. Common exits include:

Refinancing to a traditional lender once tax debt is cleared
Sale of the property
Restructuring business finances
Asset repositioning

By clearing ATO debt quickly, borrowers often improve their bankability in the medium term.

Why Assurity Capital for Private Lending Melbourne?

At Assurity Capital, we specialise in structured private lending solutions secured by real property.

Our loans:

Start from $50,000
Are secured by residential or commercial property
Can be first or second mortgage
Are assessed on asset strength and strategy

We understand that many borrowers seeking private lending Melbourne solutions are not “high risk” — they are simply in a time-sensitive or transitional situation.