Estimate Your Private Lending Costs

Adjust the sliders to match your scenario

Security Property Value

$100K $1,000,000 $10M

Loan Amount Required

$50K $650,000 $5M

Loan Term

Security Type

Estimated Total Cost

$98,500

over 12 months

LVR

65%

Est. Interest Rate

9.5% p.a.

Cost Breakdown

Interest $61,750

Establishment fee (2%) $13,000

Legal fees (est.) $5,000

Valuation (est.) $2,500

Monthly repayment (interest-only) $5,146

Total Cost of Loan $98,500

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Start Your Private Lending Assessment

Assessed on security, not income. Most lenders respond within 24-48 hours.

Understanding Private Lending Costs

Private lending costs more than bank lending, but when the alternative is losing a deposit or missing an opportunity, the numbers usually work.

Interest Rates

First mortgage: 8-15% p.a.
Second mortgage: 18-24% p.a.
Lower LVR = better rate
Residential security = best rates
Rates are assessed per deal, not per borrower

Fees & Charges

Establishment: 1-3% of loan amount
Legal: $2,000-$8,000 (lender's solicitors)
Valuation: $500-$3,000+
Exit fee: varies by lender (some nil)
Most fees can be capitalised into the loan

What Affects Your Rate

LVR: under 60% gets best pricing
Security type: residential is lowest risk
Exit strategy: clearer = better rate
Loan term: shorter isn't always cheaper
Deal complexity: straightforward = better rate

When Does Private Lending Make Sense?

Auction settlement deadlines

You've bought at auction and the bank can't settle in time. Cost of the private loan vs cost of losing a $120K deposit? The math is clear.

ATO debt or tax issues

ATO has lodged a charge on your property. Private lending clears the debt immediately, then you refinance to a bank once the charge is removed.

Credit impairment

Banks have declined you on credit history. Private lenders assess the property, not your credit score. Use the loan term to clean up your credit file.

Development or construction

You need fast capital to acquire a site or fund a build before bank construction finance kicks in. Private lending bridges the gap.

Disclaimer: This calculator provides estimates only and should not be relied upon as financial advice. Actual costs will vary depending on the lender, your individual circumstances, and the specific deal structure. Private lending rates, fees, and terms are indicative only and subject to lender assessment. Esteb and Co Pty Ltd (Credit Representative Number 574070) is a Credit Representative of BLSSA Pty Ltd (Australian Credit Licence 391237). All applications are subject to lender approval. This information does not constitute a loan offer. Please contact us to discuss your specific requirements.

Private Lending Cost Calculator