First Mortgage Private Loan in Terang, Victoria: $85,000 for Historic Property Restoration
Updated: Sep 17
Assurity Capital provided an $85,000 first mortgage private loan secured against a former bank building in Terang, Victoria.
The funding supported the renovation, restoration and repurposing of the historic regional property. The loan was structured at an estimated 30% loan-to-value ratio (LVR) and assessed using an automated valuation model (AVM), with no formal valuation required for this transaction.
Terang is one of Victoria’s oldest rural towns, with a strong farming history and a number of historic buildings and local businesses. The town is located within Corangamite Shire in south-west Victoria.
Terang Private Loan: Transaction Overview
Loan detail | Scenario |
Loan type | First mortgage private loan |
Loan amount | $85,000 |
Location | Terang, Victoria |
Security | Former bank building |
Purpose | Renovation, restoration and repurposing |
Estimated LVR | Approximately 30% |
Valuation method | Automated valuation model (AVM) |
Formal valuation | Not required for this transaction |
Borrower profile | Property owner/investor |
What Was the Terang Private Loan Used For?
The $85,000 facility was used to assist with works intended to restore and repurpose a former bank building in Terang.
Funding a historic or unusual property can involve considerations that do not arise with a standard residential home. These may include:
the property’s age and condition;
the proposed renovation works;
the building’s current and intended use;
its location in a regional market;
the property’s marketability;
the borrower’s investment strategy; and
the proposed repayment or exit strategy.
Assurity Capital assessed the property-backed transaction and provided a first mortgage private loan suited to the borrower’s renovation and restoration objectives.
Why Use Private Lending for a Historic or Regional Property?
Private lending may be considered when a property has characteristics that do not fit neatly within a traditional bank’s standard lending policy.
This may include:
historic or heritage-style buildings;
former commercial properties;
rural and regional properties;
properties requiring renovation;
properties being converted or repurposed;
unusual property layouts;
investment properties with non-standard features; and
transactions requiring a tailored lending structure.
Private lending is not automatic approval. The property, borrower, loan purpose, documentation and repayment strategy must still satisfy the lender’s criteria.
What Is a First Mortgage Private Loan?
A first mortgage private loan is secured by a first-ranking mortgage registered over the property.
The first mortgage gives the lender priority over later-ranking mortgages, subject to the relevant legal and security arrangements. A first mortgage private loan may be used for eligible:
property renovations;
property restoration;
investment property improvements;
rural property finance;
commercial property purposes;
business funding; and
property acquisition.
Interest rates, fees, terms, valuation requirements and repayment conditions depend on the individual transaction and formal approval.
How Did the 30% LVR Support the Transaction?
The Terang facility was structured at an estimated 30% LVR.
LVR is calculated by comparing the loan amount with the assessed value of the security property:
LVR = Loan amount ÷ Property value × 100
A low LVR can indicate a substantial equity position in the security property. However, LVR is only one factor in a private lending assessment. The lender may also consider:
the property’s location;
its condition and marketability;
the renovation strategy;
the borrower’s experience;
the proposed loan term; and
the exit strategy.
Can a Private Loan Fund Property Renovation?
A property-backed private loan may be considered for eligible renovation, restoration or improvement works.
Depending on the transaction, renovation funding may assist with:
building repairs;
structural improvements;
internal refurbishment;
external restoration;
services and infrastructure;
compliance-related works;
conversion or repurposing; and
preparing the property for future use or sale.
The proposed works should be clearly explained and supported by appropriate information, such as building plans, quotes, budgets, permits or a project schedule where relevant.
What Is an Automated Valuation Model?
An automated valuation model, commonly called an AVM, uses property data and market evidence to estimate a property’s value.
An AVM may consider information such as:
recent comparable sales;
property characteristics;
location;
historical sales information; and
broader market data.
For this Terang private loan, the transaction was assessed using an AVM and did not require a full formal valuation.
This does not mean every property loan can be completed without a formal valuation. The appropriate valuation method depends on the property, location, loan amount, LVR, available data and lender requirements.
Private Lending in Terang and South-West Victoria
Terang is a regional Victorian town within Corangamite Shire. It serves surrounding rural and farming communities and is connected to nearby locations including:
Camperdown;
Cobden;
Mortlake;
Noorat;
Warrnambool;
Colac;
Port Fairy; and
the wider south-west Victorian region.
Property owners and investors in Terang and surrounding regional areas may seek private finance for renovations, property improvements, business purposes, refinancing or investment opportunities.
Regional property lending is assessed individually because property values, comparable sales, demand and marketability can vary significantly between locations.
What Do Private Lenders Assess for Regional Property Finance?
A private lender may assess:
the property’s estimated market value;
the property’s location and type;
the building’s condition;
the proposed renovation or restoration;
the requested loan amount;
the estimated LVR;
the borrower’s financial position;
the intended use of funds; and
the proposed exit strategy.
Where the security is an unusual or historic property, the lender may also require further information about the building, proposed works and future use.
What Is the Exit Strategy?
An exit strategy explains how the borrower intends to repay the private loan.
For a renovation or restoration project, a potential exit strategy may involve:
refinancing after improvements are completed;
sale of the property;
repayment from another investment;
business or investment income;
release of funds from another asset; or
completion of a related property transaction.
A realistic exit strategy is an important part of any private lending application.
Assurity Capital Private Lending Solutions
Assurity Capital is an Australian non-bank lender providing property-secured private finance for eligible business, investment and commercial purposes.
Its lending solutions may include:
renovation and property improvement finance;
rural and regional property finance; and
If you are seeking a private lender in Terang, a renovation loan secured by property in Victoria or regional property finance in south-west Victoria, Assurity Capital can assess your scenario.
Finance is subject to assessment, security, eligibility, lender criteria, fees and approval. This article is general information and does not constitute personal financial advice.
Can I get a private loan in Terang, Victoria?
Potentially. A private lender may consider suitable residential, rural, commercial or unusual property in Terang, subject to security, loan purpose, LVR, documentation and approval criteria.
How much was the Terang private loan?
Assurity Capital provided an $85,000 first mortgage private loan secured against a former bank building in Terang.
What was the LVR for the Terang property loan?
The transaction was structured at an estimated 30% LVR.
Can I use a private loan to renovate a historic property?
A private loan may be considered for eligible renovation, restoration or repurposing works, subject to the property and project meeting the lender’s criteria.
Was a formal valuation required for this Terang loan?
No formal valuation was required for this transaction. The property was assessed using an automated valuation model.
Can every property loan use an AVM?
No. The valuation method depends on the property, location, available data, LVR, loan amount and lender requirements. A full valuation may be required in other circumstances.
Is private lending available for regional Victorian properties?
Private lending may be available for eligible business, investment and commercial purposes secured by suitable property in Terang and other regional Victorian locations.
What is the difference between a first mortgage and a second mortgage?
A first mortgage has priority over later-ranking mortgages registered against the property. A second mortgage ranks behind the existing first mortgage and may allow a borrower to access equity without refinancing the first loan.
How quickly can a regional private loan settle?
The timeframe depends on the application, property assessment, valuation requirements, legal documentation and lender approval. No fixed approval or settlement timeframe should be assumed.
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