Fast short term private mortgages up to 80 lvr

A private mortgage written for business purposes can reach 80% of a residential property's value or 70% of a commercial property's, in first or second position on the title. HomeSec settles private mortgages from $20,000 to $5,000,000, generally within 24 hours of approval, with interest capitalised for up to six months and no sworn valuation required at any point.

Eighty per cent is the number people search for, so let us deal with it first, and then with what actually determines whether you get the money.

What 80% LVR means, and what it does not

Loan to value ratio is total borrowing against the property divided by its value. At HomeSec the ceiling is 80% on residential security and 70% on commercial, and it is a combined figure — it includes whatever is already owed to your existing lender, not just what we advance.

So the arithmetic is: value × ceiling − existing debt = roughly what is available.

A ceiling is not a promise. It is the maximum, and where a file sits under it depends on the security, the position on title and the exit.

No sworn valuation

This is the part that removes a week and a cost from the process. We form our own view of the security rather than commissioning a registered valuer.

That matters more than it sounds. A sworn valuation is several hundred to a few thousand dollars, takes days to book and days to produce, and on a file where the whole point is speed it is often the longest single step. Plenty of private lenders require one. We do not, on any file.

First or second position

We write both. A first mortgage where there is no existing lender or where refinancing makes sense. A second mortgage where there is a good loan already in place that should not be disturbed — which is usually the situation, because refinancing to release $300,000 can cost you the rate on $900,000.

For a registered second mortgage your existing lender is generally asked to consent, and a priority deed sets out how the two rank on a sale. Most Australian banks handle these routinely. It is also the single most common reason a file takes 72 hours rather than 24.

Where the deadline will not wait for consent, a caveat needs nobody’s agreement, and we will tell you on the first call which instrument your file suits.

What “fast” actually requires

Our published standard is a conditional answer on the first phone call, a Letter of Offer within two business hours, contracts within four, and cleared funds within 24 hours of signing.

That holds when three things are true: the security is straightforward, you can sign electronically, and identification is verified the same day. It does not hold where the property sits in a company or trust whose constituent documents need review, where a first mortgagee’s consent is required, or where the title reveals an existing caveat, writ or Family Court order.

None of those are dealbreakers. All of them add time, and you should hear about them on the first call rather than on the day.

The term is open

No minimum, no maximum, no penalty for repaying early, no fee to extend. Most private lenders write one to twelve months with a three-month minimum interest period — so a borrower finished in six weeks pays for three months anyway, and a borrower whose settlement slips a fortnight has a default instead of a conversation.

We can leave it open because we fund our own loans with our own money and have no mandate requiring capital back on a date.

Reviewed by Jason Brockmuller, Joint Chief Executive