Funding: when 8.99% is cheap because every other lender just said no
Funding is not a mainstream home loan brand. It is a specialist short-term and bridging lender whose rates look punitive on paper — until you understand the files they are designed to solve. This is the story of where Funding fits, who should never use them, and the very specific profile where their 8.99% rate is actually the cheapest path forward.
Funding operates where mainstream lenders won't
Funding writes residential home loans capped at 65% LVR with a base rate of 9.24% and a cheapest product at 8.99%. The assessment rate is 9.50%. Low-doc is supported. Defaults are not accepted. The rate card, read in isolation, is expensive — roughly 3% above mainstream prime.
What the numbers mean in context: Funding is a short-term specialist. Their typical loan is 12-24 months, used as a bridge between transactions, a solution for borrowers who have property but have a mainstream-lender timing problem, or a fallback for alt-doc files that can't be processed through standard low-doc specialists fast enough. The 65% LVR cap exists because they lend on a risk-conservative basis at higher rates — not on the high-LVR specialist end of the market (Pepper, RedZed, Liberty).
Three files where Funding is genuinely the cheapest option
Bridging between properties. Homeowner selling existing property to fund a new purchase; contracts don't align; needs 6-18 months of flexible finance secured on the existing property. Mainstream bridging from Big 4 is slow to approve and often declines on complex multi-property files. Funding's short-term bridge works in weeks.
Commercial-adjacent residential. Owner-builder files, semi-commercial conversions, short-term holds on development properties where the strategy is to refinance to mainstream once fit-out completes. Funding writes where most lenders decline on security complexity.
Urgent settlement with timeline pressure. Contract with a 30-day settlement where mainstream timelines don't work and the borrower has strong equity (65% LVR or below). Funding's fast approval clears the settlement; borrower refinances to mainstream within 12 months.
The long list of wrong answers
Standard long-term home purchase: mainstream prime wins cleanly at 5.38%-6.39%. Self-employed with alt-doc needs: Pepper at 7.19% or RedZed at 7.19% are sharper. Near-prime credit with minor events: mainstream specialists win. Anything above 65% LVR: Funding can't write. First home buyer at 90%+ LVR: completely wrong channel.
In practice, Funding accounts for a very small share of Australian residential lending. Their model is short-term and specialist; a mainstream broker will rarely route through Funding unless the file profile specifically matches the short-term / bridging / timing-pressure use case.
Funding — April 2026
Think you need Funding? Let's check first.
Often the file can route through a mainstream specialist for significantly cheaper. We'll walk through the options before recommending Funding.
Get a realistic assessmentWhat is Funding?
A specialist short-term and bridging home loan lender. Not a mainstream prime or alt-doc alternative — designed for 12-24 month transitional files where standard lenders can't work.
Why is Funding's rate so high?
Short-term specialist pricing reflects the file complexity, timing flexibility and warehouse funding structure. Over a 12-24 month hold the rate premium is manageable; over 30 years it is punitive.
Can Funding lend above 65% LVR?
No. 65% LVR is the structural cap. For 90% LVR specialist files route to Pepper Money, RedZed or Liberty at significantly lower rates.
Does Funding accept defaults?
No. Clean credit required despite the specialist rate card. For credit-impaired files the right route is Pepper Specialist or RedZed Specialist.
When should a broker route to Funding?
Short-term bridging, timing-pressure settlements with strong equity, semi-commercial/complex security files where mainstream declines. Rarely as a default; always verified as necessary first.
Richard Esteb
I rarely route to Funding, and always verify that a mainstream specialist or bridging alternative has been ruled out first. The rate card looks scary in isolation; in context, for the right 12-24 month file, it is often cheaper than the alternatives. Refreshed 25 February 2026.