Victoria
Private lenders in Melbourne
When a bank says no or can't move fast enough, Melbourne borrowers often turn to private lenders. Here is how they work and how to compare them safely.
Quick answer
Private lenders offer short-term loans secured by property, judged mainly on the security and your exit plan rather than income. They cost more than banks, so compare the total cost, fees and exit before you commit.
When Melbourne borrowers use private lenders
- Settlement deadlines a bank can't meet
- Buying before selling (bridging)
- Urgent business funding secured by property
- Development sites, residual stock and construction gaps
- Self-employed or complex income that banks decline
What it costs
Expect an interest rate plus establishment, valuation and legal fees, and sometimes prepaid interest. Use the loan cost calculator to see the full cost of any offer, and Victorian stamp duty if you are buying.
Finance types to read next
- First mortgage private loans
- Short-term property finance
- Second mortgage loans
- Caveat loans
- Bridging finance
- Commercial property loans
- Construction finance
Also see private lenders in Sydney and Brisbane.
Common questions
What is a private lender?
A private lender is a non-bank that lends its own or investors' money, usually secured by property. Loans are typically short term and priced above bank rates in exchange for speed and flexibility.
How fast can a private lender settle in Melbourne?
Timing depends on the lender, the valuation and the title. Ask any lender for its expected timeline in writing and what could delay it.
How do I check a private lender is legitimate?
Check the business on ASIC registers and ABN Lookup, never pay large upfront fees before a written offer, and have the loan documents reviewed by your own lawyer.
Do private lenders need an exit strategy?
Yes. Most private loans are short term, so lenders want a clear plan to repay, such as a sale or a refinance, plus a backup if that plan slips.
Before signing, read how to check a lender and our scam red flags.
Looking for a private lender Melbourne borrowers can compare? Start with the Victorian hub.
Commercial bridging loans Melbourne
Commercial bridging loans Melbourne owners use help with purchases and refinances while a sale or longer-term loan completes. See the Victoria hub and bridging finance in Victoria.
Regions in this state
- Private lenders in Melbourne
- Private lenders in Geelong
- Private lenders in Ballarat
- Private lenders in Bendigo
- Private lenders in Mornington Peninsula
- Private lenders in Shepparton and the Goulburn Valley
- Private lenders in Warrnambool and the Great Ocean Road
- Private lenders in Latrobe Valley and Gippsland
- Private lenders in Mildura and Sunraysia
- Private lenders in Wodonga
Related guides
- Private lenders in Victoria
- Bridging finance in Victoria
- Caveat loans in Victoria
- Stamp duty in Victoria
Glossary: bridging loan
Run the numbers
Test cost and timing with the matching calculator before you speak to anyone. Then send one enquiry to finance providers.