The short answer
A private first mortgage business loan is a loan from a non-bank lender that takes first registered position on a property, either because the property is debt-free or because the loan pays out the existing bank. It suits businesses that need to refinance out of a bank quickly, release equity from unencumbered property, or borrow when the bank's process is too slow. Loans run from $20,000 to $5,000,000.
- First registered position on residential or commercial property
- Refinance out of a bank that wants you gone, in days rather than months
- Release cash from a property with no mortgage on it
- Assessed on property and exit, so financials and credit score matter less
| Loan size | $20,000 to $5,000,000 |
|---|---|
| Security | Registered first mortgage |
| Typical use | Bank refinance, equity release, urgent purchases |
| Decision | Same-day indications are common |
| Documents | Low-doc where the security and exit are strong |
Private first mortgage business loans are non-bank loans secured by a mortgage that sits in first place on the title. Either the property has no existing debt, or our loan pays out the current lender at settlement and takes its spot. At BizLoansFast we write private first mortgages from $20,000 to $5,000,000 over residential and commercial property, for businesses that need a lender to move at the speed of the problem.
A first mortgage is the strongest security a lender can hold, which is why it is the right structure for larger loans, longer terms and refinances where the whole debt needs to move.
What makes a private first mortgage different from a bank loan?
The difference is how the decision gets made. A bank works through serviceability models, recent tax returns, credit scores and committee sign-offs. A private lender like us leans on the value of the property, the size of the loan against it and the plan to repay, which is why we can say yes in a day when the bank needs weeks.
| Point of difference | Bank first mortgage | Private first mortgage |
|---|---|---|
| Time to decision | Often weeks | Often the same day |
| Financials | Full, recent and lodged | Low-doc possible when equity and exit are strong |
| Credit history | Heavily weighted | Considered, but property and exit carry the deal |
| Term | Long, often decades | Short, sized to the exit |
| Cost | Lowest available | Higher, because of speed and flexibility |
| Best for | Stable, long-term borrowing | Urgent, unusual or transitional situations |
That last row is the whole story. If your situation is steady and you can wait, a bank is cheaper. If you can’t wait, or the bank won’t play, a private first mortgage is the bridge back to stable ground. The full comparison is in our guide to fast business loans versus bank loans.
Why are more businesses choosing a non-bank first mortgage?
Businesses are turning to non-bank lenders because the banks are harder and slower to deal with for anything outside the standard box. The Reserve Bank’s October 2025 Bulletin reported that the non-bank share of SME lending has risen strongly since the start of 2022, particularly for smaller loans, and that roughly one in five SMEs had run into problems getting finance. Lender requirements that were too strict and long processing times were among the main reasons given.
A non-bank first mortgage answers both. The criteria are built around the security, and the process is built around your deadline.
How do you refinance out of the bank fast?
To refinance out of the bank fast, get the payout figure moving on day one and give your new lender a complete file. The bank’s discharge team is usually the slowest party in the chain, so the earlier they are asked, the better.
The steps:
- Tell us the situation. Who the lender is, what is owed, why you are leaving and when you need to be out.
- Authorise the payout request. We or your solicitor ask the bank for a formal payout figure and discharge.
- Property check. We assess the property ourselves, so there is no valuer to book and no valuation fee. If you have an agent’s appraisal or recent nearby sales, send them, but they are not required.
- Sign the offer and documents. All owners and guarantors sign, in person or remotely.
- Settle electronically. On the day, the old loan is repaid and our mortgage is registered in the same transaction. PEXA describes how settlement funds are exchanged electronically and eligible documents are lodged with the land registry as part of the same online settlement.
The first 48 hours after the bank’s letter
When a bank asks you to leave, the first two days set the pace for everything that follows. Use them well:
- Read the letter closely for the exit date and whether the bank will accept a refinance commitment as progress.
- Request a written payout figure, including any arrears, fees or break costs.
- Pull together the last loan statements, rates notices and any leases on the property.
- Call us with the full picture, including anything awkward. A late-discovered arrears balance or second debt is the most common reason refinances slip.
- Keep paying the existing loan if you can. A clean payment record during the transition makes the bank’s discharge team far easier to deal with.
Common reasons we see for a fast refinance:
- The bank has issued a notice asking the business to find another lender.
- A facility has expired and the bank won’t roll it over.
- An annual review has gone badly after one weak year.
- The business has fallen into arrears and the bank’s patience is short.
- The borrower wants to release equity and the bank’s process can’t meet the deadline.
If any of these sound familiar, ask us about a first mortgage refinance and we will tell you today whether the numbers work. For the full picture on moving debt, see business loan refinancing.
What property can secure a private first mortgage?
Residential and commercial property in Australia can secure a private first mortgage, whether owned by the business, a director or a guarantor. We regularly lend against:
- Houses, townhouses and units, including the director’s home.
- Investment residential property, tenanted or vacant.
- Shops, offices, medical suites and showrooms.
- Factories, warehouses and industrial units.
- Mixed-use buildings with commercial space downstairs.
More specialised assets, such as vacant land, rural holdings or purpose-built hospitality venues, are judged individually and usually need a bigger equity buffer, though we still assess them ourselves rather than ordering a valuation. For commercial premises specifically, our commercial loan page goes into more detail.
Do private first mortgage lenders check credit and financials?
We look at credit history, but it doesn’t decide the outcome on its own. A past default, an old ATO debt or a bank decline is common among the people who call us, and it is rarely the reason we say no.
Financials work the same way. If your accounts are a year behind because the accountant is swamped, that is not a problem when the property has strong equity and the exit is clear. Where the exit is a refinance back to a bank, we will talk to you about getting the books up to date during the term so the bank can say yes at the end.
On regulation, one plain fact: ASIC’s guidance is that a loan not predominantly for personal, domestic or household purposes is not regulated under the National Credit Act. Our first mortgages are business loans, used for business purposes.
Being honest about cost: private first mortgage money is dearer than bank money. You use it because the speed, the flexibility or the plain willingness to lend is worth more to you right now than the difference.
What does the exit look like on a private first mortgage?
The exit is how the loan is repaid at the end of a short term, and we agree it with you before settlement. Because a first mortgage can run longer than a caveat or second mortgage, the exits tend to be bigger, planned events.
- Back to a bank. Once the business has a clean year of accounts or the issue that upset the bank is resolved.
- Sale. Of the security property, another property, or the business itself.
- Long-term private or non-bank refinance. Where a mainstream bank won’t be the right fit even after the term.
- Major receivable. A large contract payment or settlement that clears the debt.
Illustrative example: a Sydney engineering firm’s bank declines to renew a $900,000 facility secured on its workshop, which is worth around $2,400,000, after a loss-making year caused by one bad contract. The bank gives the business 60 days. We approve a $1,100,000 private first mortgage within a day, settle with the outgoing bank 12 days later, and release $200,000 extra for working capital. Fourteen months on, with two profitable quarters on the board, the business refinances back to a mainstream lender and our loan is discharged.
Are private first mortgage business loans right for you?
A first mortgage is right when the loan is large relative to existing debt, when you are replacing the bank entirely, or when the property is unencumbered. If the bank loan is fine and you just need extra cash quickly, a second mortgage keeps things simpler. If the bank is the problem because it is too slow, read what to do when banks are too slow. All our loan types are listed on the products page.
Let’s get your first mortgage moving
If the bank has closed the door or can’t keep up, talk to a lender who can. Enquiring with us doesn’t touch your credit file. Your information isn’t broadcast to a dozen lenders, and the person reading your file deals with urgent property-backed loans every day. You will get a fast, clear answer, and if the deal won’t work you will hear that straight away too.
Give us accurate figures in the form: the true payout amount, the property details and the honest exit. That is how the first answer becomes the one that settles. Start your private first mortgage application or call 1300 852 150.
How it works, step by step
- EnquireTell us the property, what is owed on it, the amount you need and how you plan to repay.
- Payout and property checkWe request the current lender's payout figure and assess the property ourselves. No valuation needed.
- OfferYou receive a written offer and loan documents to sign.
- Book settlementSettlement is booked with the outgoing lender on an electronic platform.
- SettleThe old loan is discharged, our mortgage is registered and surplus funds go to you.
First mortgages: your questions answered
My bank has sent a letter asking me to refinance elsewhere. How quickly can you act?
Fast, as long as the property and the exit are clear. Send us the bank's letter, the latest loan statement and the property details. We can usually give an indication within the day and start the payout request straight away, so the refinance is underway well before the bank's deadline.
Can I borrow on a first mortgage if the property is owned by my company?
Yes. Properties held by a company or a trust within the business group can be considered, with the directors or trustees signing as required. We need the company or trust details and, for a trust, a copy of the deed so we can confirm who has authority to borrow.
Is a private first mortgage only for distressed borrowers?
Not at all. Plenty of our first mortgage borrowers are profitable businesses whose accounts are not finalised yet, who need to settle a purchase quickly, or who simply don't want to wait eight weeks for a bank. The common thread is urgency or an unusual situation, not trouble.
Do you lend on vacant land or rural property?
Our core security is residential and commercial property. Vacant land, rural holdings and specialised buildings can be looked at case by case. We still assess them ourselves with no valuation needed, but they usually need more equity and a stronger exit. Tell us exactly what the property is in your enquiry and we will say quickly whether it works.
Can the loan include extra cash on top of paying out the bank?
Yes. If there is enough equity, the new first mortgage can pay out the old lender and release additional funds for the business in the same settlement. Show us what the extra money is for and how the whole loan will be repaid at the end of the term.
Sources we checked
Written by the BizLoansFast lending team · Updated 2026-10-05