Fast private mortgages for business, arranged in days

What “fast” really means

Fast does not mean careless. A fast private mortgage lender still checks the title, still assesses the property and still expects a clear way to be repaid. What makes it fast is that it does those checks in a day or two rather than over weeks, and that it does not add the extra layers a bank or longer-term lender asks for: a formal valuation, financial statements and a credit committee.

For a first mortgage over a clear title with the documents ready, same day is possible. For most deals it is a few days. For complex ones, involving a trust, several owners or a bank that needs to consent, it is a little longer.

The three checks

1. The title. The lender’s solicitor searches the title to see who owns the property, what is registered against it and whether anything stands in the way of a new mortgage. A clean title is the single biggest factor in speed.

2. The property. The lender assesses what the property is worth and how easily it could be sold. For a fast loan this is often done by the lender’s own team using recent sales and sometimes a drive-by inspection, rather than a formal valuation.

3. The exit. The lender wants to know how and when it will be repaid. A confirmed sale, a bank refinance in progress or a contracted payment all work. “We will trade our way out of it” is much weaker.

What you can do to speed it up

• Identification: every borrower, guarantor and director signed up and verified.
• Ownership: a current title search or a copy of the certificate of title, and company or trust documents if the property sits in an entity.
• Existing loans: a recent statement for each mortgage on the property.
• Co-owners: agree in advance that everyone will sign.
• Exit evidence: an agent’s appraisal, an indicative bank approval or the contract that will pay the loan out.
• A business purpose: a short note on what the money is for. Read about the business purpose declaration.

A borrower who arrives with those ready can often sign inside a day. A borrower who has to find them can lose a week.

First mortgage or second

A fast private first mortgage is the simplest structure when the property is clear or when you want to pay out an existing lender: one lender, one mortgage, no consent needed from anyone else. A fast second mortgage is a good fit when your existing loan is worth keeping, but the first mortgagee may have to consent. Our guide to the three structures explains how to choose.

Locations

Fast private mortgage lenders are generally willing to lend in most towns and cities across Australia, not only the capitals. The more saleable the property, the more comfortable they are, but a regional shop or a rural home is not an automatic no. See the locations section for how lenders view each state.

What fast costs

Speed has a price. Fast private mortgages generally cost more per month than a longer-term private loan or a bank loan, and may include establishment fees and a minimum interest period. The useful figure is the total cost in dollars until you exit. Before you sign, run the offer through our caveat loan calculator and read our letter of offer checklist.

Is it right for you?

A fast private mortgage fits when time is short, the property is solid and the exit is clear. It is a poor fit when you have months to spare and a clean credit history, because a longer-term loan will cost less. If you are not sure which side of that line you are on, ask us.

A worked example of a fast first mortgage

A café owner in Brisbane needs funds against a commercial unit she owns outright. She has a clear title, a current rates notice, a signed company resolution and an agent’s appraisal showing the unit is comfortably worth more than the loan. Because the paperwork is ready and the title is clean, the lender’s solicitor searches the title in the morning, the lender confirms the amount after assessing the property, and documents go out for signing the same afternoon. Funds can move once the mortgage is registered. The same loan, with a title that needed a trust deed updated and a co-owner who was interstate, might have taken a week. The difference is preparation, not the lender.

Questions worth asking any lender

Ask what the total cost in dollars will be at your expected exit, whether there is a minimum interest period, who pays the lender’s legal costs, what happens if the exit is a month late, and whether any further valuation or approval could change the offer. A confident lender answers in writing, and answers the same way twice.

Start your enquiry

Tell us the property, the amount and the deadline. There is no credit check when you first enquire, a person on our desk reads your enquiry and you will hear what is realistic, and how fast, before you commit to anything. Start your enquiry.