In the Australian mortgage market, private lending has become a highly relevant option for both borrowers and brokers. Unlike traditional bank lending, which is heavily regulated and documentation-driven, private funding provides a flexible environment where speed and tailored solutions are often prioritised.
From a broker’s perspective, one of the greatest advantages is the ability to offer loans in scenarios where mainstream lenders simply cannot assist. This may include no or low documentation loans, asset-based lending, or deals secured by property that banks are reluctant to consider. Private lenders will often accept a broader range of real estate security, such as rural or specialised commercial property, and can even support construction projects where conventional funding would be difficult.
There is also commercial benefit in the way brokers can structure their fees. In many private lending arrangements, the broker sets their own fee, which can more accurately reflect the work and expertise required on complex transactions. For those with strong deal-making skills and the ability to place non-standard loans, this flexibility creates opportunities that go beyond what is available with mainstream institutions.
However, there are challenges to acknowledge. While private lenders bring speed and flexibility, the cost of capital is generally higher, and brokers must manage borrower expectations carefully. Due diligence is also crucial, as some operators may lack the long-term stability or compliance frameworks expected in the regulated space. Transparency around fees, interest rates, and exit strategies is essential to protect both brokers and their clients.
Interestingly, the model of private lenders taking a fee-for-service approach has parallels to mortgage broking itself. Just as brokers advise and structure deals independently of a particular bank, private lenders create opportunities outside the traditional system. Both rely on trust, market knowledge, and the ability to deliver solutions quickly in a landscape where borrowers demand outcomes over process.
At the forefront of this sector, Oasis Mortgage Group has become a leader in private loan aggregation. With over 30 years of industry experience and three Australian Mortgage Awards, they have built a reputation as the most awarded private loan aggregator in the country. Their expertise has given brokers a reliable pathway into private lending, balancing the need for flexibility with the reassurance of working alongside an experienced and award-winning group.
For brokers, private lending is not simply a niche alternative, but a dynamic part of the mortgage landscape that opens doors to clients who might otherwise be left without options. When managed with professionalism and transparency, it can be an invaluable addition to a broker’s toolkit.
