Melbourne borrowers have access to a strong network of private lenders offering fast, flexible finance for property and business needs.
Private Lending in Melbourne
Melbourne's private lending market is one of Australia's most active, with numerous local and national private lenders servicing Victoria.
Why Melbourne has strong private lending:
- Large property market
- Active property investors
- Strong business sector
- High property values (more equity available)
- Competitive lender market
Types of Private Lending Available in Melbourne
Residential Property Lending
Security: Melbourne houses, apartments, units Rates: 7-15% p.a. LVR: Up to 75% Use: Purchase, refinance, equity release
Melbourne property advantages:
- High property values = larger loans
- Strong rental markets
- Good capital growth history
Commercial Property Lending
Security: Melbourne CBD, suburban commercial Rates: 8-16% p.a. Areas: CBD, inner suburbs, growth corridors
Business Lending
Security: Property or business assets Rates: 8-16% p.a. Industries: All Melbourne industries served
Bridging Finance
Common in Melbourne for:
- Auction purchases (competitive market)
- Inner-ring property upgrades
- Buy before sell in strong suburbs
Melbourne-Specific Scenarios
Scenario 1: Inner Melbourne Auction
- Property: Northcote house, auction Saturday
- Value: $1.2M
- Need: $960,000 (80% LVR)
- Solution: Private bridging loan, 7-day settlement
- Win auction, refinance to bank in 3 months
Scenario 2: Melbourne Business Owner
- Business: South Melbourne cafe
- Need: $150,000 working capital
- Security: Residential property in Footscray
- Solution: Private business loan @ 11% p.a.
- Use: Expansion, new equipment
Scenario 3: Development Finance
- Project: 4 townhouses, Reservoir
- Land cost: $800,000
- Build cost: $1.2M
- Private development finance: 70% LVR
- Enables project banks won't touch yet
Melbourne Private Lenders
Types active in Melbourne:
- National private lenders (Liberty, Pepper, etc.)
- Victoria-based mortgage trusts
- Local private credit funds
- Individual private lenders
- Family offices
Melbourne Suburbs & Private Lending
Inner Melbourne (High Demand):
- CBD, South Yarra, Richmond, Fitzroy
- Higher property values
- More lender appetite
- Competitive rates
Middle Ring:
- Glen Waverley, Box Hill, Footscray
- Good lender acceptance
- Standard rates
Outer Melbourne:
- Growth corridors (Werribee, Craigieburn)
- Some lenders cautious
- May need lower LVR
Regional Victoria:
- Geelong, Ballarat, Bendigo
- Specialist lenders
- Lower LVRs typically
Rates in Melbourne
Residential: 7-15% p.a. Commercial: 8-16% p.a. Development: 10-16% p.a. Bridging: 1.5-3% per month
Melbourne rates vs other cities:
- Similar to Sydney
- Slightly lower than regional areas
- Competition keeps rates competitive
How to Find Melbourne Private Lenders
Options:
- Introducer platforms - Connect with multiple Melbourne lenders
- Mortgage brokers - Melbourne specialists
- Direct to lenders - Research and apply
- Referrals - Accountants, solicitors
Questions to ask:
- Do you lend in my Melbourne suburb?
- What's your typical LVR for my area?
- Experience with Melbourne property?
- Local office or representatives?
Melbourne Advantages for Private Lending
✅ Large lender pool - More competition = better rates ✅ Strong property market - Lenders confident in Melbourne property ✅ Fast settlements - Local lenders can settle quickly ✅ Diverse options - Lenders for all situations ✅ Active market - Experienced in Melbourne deals
Need private lending in Melbourne? Connect with Melbourne private lenders.