Private money moves fast. Before you sign, see what it actually costs.
Private lending buys speed and flexibility a bank can't — but it's priced for risk and short terms, so the headline rate is only part of the story. This calculator adds up the whole picture: interest, establishment fee, legal and valuation costs, over your chosen term. Every figure is indicative and deal-specific — a starting point for a conversation, not an offer.
Business & investment-purpose finance · arranged through Esteb Capital · indicative, not a quoteEstimate your private lending costs
Adjust the security, loan and term to match your scenario
Cost breakdown
Indicative estimate only, generated from typical private-lending pricing — not an offer of credit, a quote, or a comparison rate. Actual rate, fees and terms are set per deal on assessment of the security, LVR and exit.
Want a personalised breakdown?
Leave your email and a private lending specialist will review your scenario and come back with indicative numbers structured around your exit.
Assessed on the security and exit, not just income · well-prepared files often see indicative answers in around 24 hours.
Pricing follows the risk, not your payslip.
Private lending is priced per deal. The two biggest levers are how much you're borrowing against the security (LVR) and where your loan sits in the queue if things go wrong (first vs second mortgage). Lower LVR and a first-registered mortgage price the sharpest.
Ranges are indicative only and highly deal-specific — they depend on security quality, LVR, exit strategy, term and borrower profile, and are wholesale/commercial pricing, not advertised consumer rates or a comparison rate. Typical maximum LVR is around 70–75% for a private first mortgage and 60–65% combined for a second-mortgage/caveat facility. Not an offer of credit.
Three cost buckets to weigh before you commit.
Private lending costs more than a bank — but when the alternative is losing a deposit or missing a deadline, the numbers often still work. Here's what makes up the total.
Interest
- Charged on the drawn balance, usually interest-only
- Priced per deal, on the security — not your credit score
- Lower LVR earns a sharper rate
- Residential security typically prices best
- First mortgage cheaper than second/caveat
Fees & charges
- Establishment: commonly ~1–3% of the loan
- Legal: lender's solicitor costs (often ~$2k–$8k)
- Valuation: ~$500–$3,000+ by property type
- Exit fee: varies by lender (some nil)
- Many fees can be capitalised into the facility
What moves your rate
- LVR: under ~60% earns the best pricing
- Security type: residential is lowest risk
- Exit strategy: the clearer, the better
- Term: shorter isn't always cheaper
- Deal complexity: straightforward prices sharper
Where private lending genuinely makes sense.
It's rarely the cheapest money — it's the fastest, most flexible money. These are the situations where that trade pays off.
Auction & settlement deadlines
You've committed to a purchase and the bank can't settle in time. Weigh the cost of a short private loan against the cost of losing a six-figure deposit — the maths usually decides itself.
ATO or tax debt
A pressing tax liability needs clearing before you can move. Private funding clears it now, then you term out or refinance once the position is clean — a business-purpose bridge.
Distressed or non-conforming refinance
Refinancing out of arrears, a default or an expiring facility to buy time to reposition. Private lenders assess the property and the exit, not just the credit file.
Development & construction shortfalls
Fast capital to secure a site, fund residual stock, or cover a construction shortfall before longer-term bank finance is in place. Private lending bridges the gap.
Private credit is growing — and now under the regulator's eye
Non-bank and private lenders have taken a rising share of business and construction lending since 2022. The RBA estimates Australian private credit outstanding at around A$50 billion as at December 2025 (it flags notable data gaps), a sub-set of a much larger pool measured by assets under management. It remains less than 2% of total financial-system assets, so the RBA judges systemic risk contained for now.
In late 2025 ASIC reviewed 28 private credit funds (REP 814, Sep 2025; REP 820, Nov 2025) and called on the industry to lift standards around conflicts, fee transparency, valuation and disclosure. The takeaway for a borrower: private lending is legitimate and useful, but terms vary widely — read the facility carefully and take independent advice.
Market-size and regulatory figures are macro context from the RBA and ASIC as cited (2025–2026) and do not describe Esteb Capital's own lending. General information only, not advice.
A different kind of loan — and a different rulebook
The private lending on this page is business- or investment-purpose finance, arranged through Esteb Capital and typically offered to wholesale or "sophisticated" borrowers. Credit provided wholly or predominantly for business or investment purposes sits outside the National Credit Code that governs consumer home loans — so there's more flexibility, but fewer consumer protections, and a business-purpose declaration is usually required.
The "sophisticated investor" test (Corporations Act s708(8) / s761G) is broadly ~A$2.5m in net assets or ~A$250k gross income in each of the last two financial years, certified by a qualified accountant.
Our job is to be straight about which loan you're actually looking at — and, often, to tell you when a bank or a longer-term facility is the better answer. Nothing here is legal, tax or financial advice; seek your own independent advice before entering any facility.
Private lending costs, answered straight.
How much does a private loan cost in total?
The total is interest on the drawn balance plus an establishment fee (commonly around 1–3% of the loan), legal costs (often around $2,000–$8,000) and a valuation (roughly $500–$3,000+ by property type). Over a short term the fees can be a big share of the cost, which is why a longer bank loan is often cheaper if you have time. The calculator above adds these up as an indicative estimate — your actual costs are set per deal.
What interest rate will I pay on a private loan?
Indicatively, a private first mortgage at a conservative LVR (around 65% or lower) sits near 9–10.5% p.a., rising toward 11–14% at higher LVRs or on commercial, land or rural security; second-mortgage and caveat facilities are higher again, roughly 12–18% p.a. These are wholesale, deal-specific figures — not advertised consumer rates or a comparison rate — priced on the security, LVR and exit.
What fees are involved beyond interest?
Typically an establishment fee of around 1–3% of the loan, the lender's legal costs, a valuation fee, and sometimes an exit or line fee (some lenders charge nil to exit). Many of these can be capitalised into the facility rather than paid upfront. We set them out in writing before you commit so there are no surprises.
How much can I borrow — what LVR is possible?
Typical maximums are around 70–75% LVR for a private first mortgage against current market value, and around 60–65% combined for a second-mortgage or caveat facility. A lower LVR usually means a sharper rate and wider lender appetite. These are indicative caps, not a promise — every deal is assessed on its own security and exit.
How long are private loan terms?
Private and bridging finance is short-term by design — often 1 to 12 months, sometimes up to 36, with caveat loans as short as 1 to 3 months. It needs a defined exit, usually a property sale or a refinance onto a longer-term facility, which we plan before you draw down rather than after.
Is private lending regulated like a home loan?
Generally no. It's usually for business or investment purposes and for wholesale or sophisticated borrowers, which sits outside the National Credit Code that governs consumer home loans. That means more flexibility but fewer consumer protections, and a business-purpose declaration — so we make sure it's genuinely the right fit before proceeding, and arrange it through Esteb Capital.
Have a deal with a deadline? Let's price the exit first.
Tell us about the security, the amount and how you'll exit — we'll come back with indicative numbers and structure the facility around getting you out cleanly. No obligation.
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