Private Lenders

What are private lenders?

Private lenders offer money that has originated from private sources like wealthy individuals, private equity firms or organisations. Private lenders are not commonly available to the general public (like a commercial bank), and are accessible by connected brokers who understand how to secure private money sources for certain transactions. See private loans for more information.

Private lender


Types of private lenders

Private lenders may be any of the following:

  • Wealthy Individuals
  • Private money lending companies
  • Private equity firms
  • Solicitors funds
  • Foreign capital raising entities

Why would you go to a private lender?

A private lender is an attractive alternative when you fail to satisfy the loan criteria of a traditional lender. A private lender will generally be much more lenient or agnostic about certain issues in assessment. In this case, you will find most private lender loans are also non-coded, which means they sit outside the Nation Consumer Credit Protection Act (NCCP).

Are private lenders asset lenders?

Generally, it is correct to say private lenders are usually asset style lenders who lend according to asset value as a primary pre-requisite. In this case, you will find private lenders who will say they lend between 50-75% LVR when lending on a property type. Additionally, private lenders are also lenders who offer the following types of loan policies:

Types of security private lenders accept?

Private lenders accept a wide variety of security depending on the lender and scenario. These can include any of the following types of securities

  • Residential property
  • Commercial property
  • Industrial property
  • Vacant land
  • Development sites
  • Land banking Sites
  • Construction sites
  • Luxury goods - sports cars, yachts and boats etc
  • General Security Agreements (GSA)
  • Business machinery & stock
  • Outstanding invoices/debtors
  • Term depositsPrivate lender assessment


Private lenders cost

Private lenders are more expensive than a normal type of bank loan. This is generally attributed to the associated risks in securing these type of loans for the borrowers and the return an investor would want for the risk. When compared to a normal bank loan, a private lender will charge higher costs on the following:

  1. Interest rates
  2. Application fees
  3. Legal fees
  4. Discharge fees
  5. Default costs

When you are looking at obtaining a private lender, it's best to speak directly with one of our private mortgage specialists who understands private lending and how to source this money. At Mortgage Providers we have a network of over 50 Private lending bodies and can access the right source of funds for your case scenario.