First Mortgage Interest Rates for Projects 2025
First Mortgage Interest Rates for Projects 2025. First ranking security means better rates and faster approvals. Settle your project finance in 48-72 hours.
First Mortgage Interest Rates for Projects 2025
Approval decisions within 24-48 hours. When your development project needs funding fast, first mortgage finance from private lenders delivers speed that banks simply cannot match.
First mortgage means your lender takes first ranking security over the property — this reduces their risk and means better terms for you, including faster approvals and more competitive rates.
Why First Mortgage for Project Finance?
Lower Risk = Better Terms
First mortgage lenders are first in line to be repaid if anything goes wrong. This security position means:
- Lower interest rates (typically 10-14% p.a. vs 15-18%+ for second mortgages)
- Higher LVR available (up to 70-75% of land value, or 65% of GDV)
- Faster approvals — less risk means quicker decisions
- Larger loan amounts available
Speed Advantage
| Funding Source | Typical Approval | Settlement |
|---|---|---|
| Major Banks | 4-8 weeks | 2-4 weeks after |
| Private First Mortgage | 24-48 hours | 48-72 hours |
| Non-Bank Lenders | 1-2 weeks | 1-2 weeks |
When you're competing for development sites or facing tight deadlines, this speed difference can make or break your deal.
Typical First Mortgage Project Finance Terms
Standard Terms
| Component | Typical Range |
|---|---|
| Interest Rate | 10% - 14% p.a. |
| Establishment Fee | 1.5% - 3% |
| LVR (Land Value) | Up to 70-75% |
| LVR (As-If Complete) | Up to 65% of GDV |
| Term | 6 - 24 months |
| Interest | Capitalised or monthly |
What Affects Your Rate
- LVR — Lower LVR = lower rate
- Location — Metro properties typically get better rates
- Project type — Established categories (townhouses, units) vs specialty
- Developer experience — Track record matters
- Exit strength — Presales, refinance options
How Fast First Mortgage Works
Step 1: Submit Your Project (5 Minutes)
Provide basic project details:
- Site address and current value
- Project overview (what you're building)
- Total project costs
- Funding amount required
- Your timeline
Step 2: Indicative Terms (Same Day)
Within hours, receive indicative terms from interested lenders:
- Proposed interest rate
- LVR offered
- Fees
- Settlement timeframe
Step 3: Due Diligence (24-48 Hours)
Once you proceed:
- Valuation ordered (often same-day for metro)
- Legal review of security
- Project feasibility check
Step 4: Formal Approval (24-48 Hours)
Loan documents prepared and ready for execution.
Step 5: Settlement (24-72 Hours)
Funds settled to your account or direct to vendor/builder.
Total timeline: As little as 3-5 business days from first enquiry.
Project Types We Finance
Residential Development
- Townhouse developments (3-20+ dwellings)
- Unit/apartment projects
- Duplex and triplex builds
- House and land subdivisions
- Spec home construction
- Knock-down rebuilds
Commercial Development
- Retail developments
- Office buildings
- Industrial and warehouse projects
- Mixed-use developments
- Childcare centres
- Medical centres
Specialty Projects
- Student accommodation
- Serviced apartments
- Aged care facilities
- Hotel/motel developments
What You Need for Fast Approval
Essential Documents
- Site Information
- Current title search
- Recent valuation or sales evidence
- DA approval (if applicable)
- Survey/plans
- Project Details
- Project summary/feasibility
- Construction cost estimate or fixed-price contract
- Timeline/program
- Sales evidence or presale contracts (if applicable)
- Borrower Information
- Company/trust details
- Director IDs
- Development experience summary
- Exit strategy
What Speeds Up Approval
- Clear title — No existing encumbrances or easy to discharge
- DA approved — Removes planning risk
- Fixed-price building contract — Cost certainty
- Presales (if applicable) — De-risks the exit
- Experienced developer — Track record builds confidence
- Strong exit — Clear refinance or sale pathway
First Mortgage vs Other Project Finance Options
First Mortgage vs Bank Construction Loan
| Factor | Bank | Private First Mortgage |
|---|---|---|
| Approval time | 4-8 weeks | 24-48 hours |
| Interest rate | 6-8% | 10-14% |
| LVR | Up to 80% GDV | Up to 65-70% GDV |
| Progress draws | Complex process | Flexible |
| Best for | Time-rich developers | Urgent situations |
First Mortgage vs Second Mortgage
| Factor | First Mortgage | Second Mortgage |
|---|---|---|
| Security position | First ranking | Behind first mortgage |
| Interest rate | 10-14% | 15-20%+ |
| LVR | Higher available | Limited by first mortgage |
| Risk to lender | Lower | Higher |
| Best for | Primary project funding | Top-up/gap funding |
First Mortgage vs Mezzanine Finance
| Factor | First Mortgage | Mezzanine |
|---|---|---|
| Security | Registered mortgage | Second mortgage or caveat |
| Rate | 10-14% | 18-25%+ |
| LVR | Up to 65-70% | Fills gap to 80%+ |
| Best for | Core project funding | Reducing equity requirement |
Common Scenarios for Fast First Mortgage
Scenario 1: Site Acquisition Race
You've found a development site but the vendor wants quick settlement. Banks will take months.
Solution: Private first mortgage settles in 48-72 hours. Secure the site, then refinance to a bank later.
Scenario 2: Bank Finance Fell Through
Your bank approval was delayed or declined 2 weeks before settlement.
Solution: Fast first mortgage rescue. Private lenders can assess and settle within your remaining timeframe.
Scenario 3: Construction Ready to Start
DA is approved, builder is ready, but your bank construction loan is still in credit committee.
Solution: First mortgage construction funding gets you building now. Refinance to bank once construction is underway.
Scenario 4: Project Cost Overrun
You're mid-construction and costs have exceeded your original loan. Your bank won't extend.
Solution: First mortgage refinance that covers original loan plus additional costs. One clean facility.
Frequently Asked Questions
What LVR can I get on a first mortgage for development?
Typically up to 70-75% of current land value, or 65% of Gross Development Value (as-if-complete value). Higher LVR may be available with strong presales or experienced developers.
How quickly can you really settle?
For straightforward deals — clear title, metro location, experienced developer — settlement in 48-72 hours is achievable. Complex deals may take 5-7 business days.
What interest rate should I expect?
First mortgage development rates typically range from 10-14% p.a. Rate depends on LVR, location, project type, and developer experience. Lower LVR = lower rate.
Can I get first mortgage funding if I'm a first-time developer?
Yes, though you may face lower LVR limits and higher rates. Consider partnering with an experienced developer or starting with a smaller project.
What's the minimum loan size?
Most private lenders start at $250,000-$500,000 for first mortgage development loans. Smaller amounts may attract higher rates.
Do I need presales?
Not always required for first mortgage, especially at lower LVR. Presales strengthen your application and may improve terms.
Ready for Fast First Mortgage Project Finance?
When your development project needs funding fast, first mortgage finance from private lenders offers the speed advantage you need.
Introducr connects developers with verified private lenders who specialise in fast project finance. Post your deal in minutes and receive indicative terms within hours.
- First mortgage rates from 10% p.a.
- Approval decisions in 24-48 hours
- Settlement in 48-72 hours
- LVR up to 70-75%
Post your project now and see how quickly you can secure first mortgage funding.
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