Commercial private mortgages in Melbourne
Short-term commercial private mortgages in Melbourne for refinances, equity release and purchases, and the kinds of Melbourne commercial deals we see.
Melbourne's commercial enquiries are a mix of well-located strip retail and offices where the borrower wants speed or a bit of extra cash, and larger land and income-producing assets that need more flexibility than a bank will offer. A commercial private mortgage covers both, as a short-term loan secured by the property, repaid by a sale or a refinance.
We lend $1M to $20M on Melbourne commercial property, for business and investment purposes, over 6 to 36 months, and we normally settle in 5 to 10 business days once the valuation is in.
Melbourne commercial deals we've looked at
The examples below are based on real enquiries, but the numbers and details have been changed so none of them can be identified.
A well-located commercial refinance. An owner of a quality commercial property wanted to refinance a bank loan and release a modest amount for business cash flow, at a conservative LVR. It was a low-risk loan, and the broker was comparing lenders on price, so another lender took it. On deals like this the rate matters most, and we're happy to compete where the risk is low.
A well-presented proposal with too much leverage. A polished funding proposal against a site we liked on face value, but once we worked through the detail the leverage was well above what we can do, so we told the adviser quickly and explained why.
A second mortgage on completed stock. A developer needed a second mortgage behind their existing lender to cover a shortfall on unsold apartments. We sized it to our funder's limit and pointed the broker to another lender who could go higher. There's more on how these work in our residual stock guide.
Large land holdings on the growth fringe. We've seen several large requests for land banking, subdivision works and purchases on Melbourne's fringe. None went ahead with us, mostly because they relied on future development value or included civil works, which is construction finance rather than a private mortgage.
What Melbourne commercial lenders look at
- Leverage after interest and fees. A loan that starts at 70% can end at 78% after a year of capitalised interest.
- The asset's current use and income. The lease, the tenant and the rent, or a vacancy allowance if it's empty.
- Whether the value relies on a future approval. If it does, most private lenders will value the site as it stands.
- A clear exit. A bank, a sale or a lease event, with evidence.
Frequently asked questions
Can I release equity from a Melbourne commercial property for my business?
Yes, for a genuine business purpose, as long as the value supports it and there's a way to repay within the term.
Do you fund subdivision or civil works?
No. Those are construction loans, and we'll point you to a specialist if we can.
Will you compete on price?
On low-risk deals, yes. Tell us what else is on the table and we'll tell you honestly whether we can match it.