First Mortgage Loans

The ‘first mortgage’ is the term used to describe the first or initial loan that you acquire for a property. As security, the lender is placed to be the first claimant of the property in case if the borrower was to default on the loan. This lender is also known as “first registered interest ‘. This first mortgage-holder enjoys the upper hand over all other claims on the home (except for particular government or legal claims, like the land tax)

No Doc and No Credit Checks

First Mortgage Loan

Same Day Approvals

No Hidden Fees

Bad Credit Loans

Serving Since 2001

Lending All Across Australia

A small business loan is a type of loan specifically designed for small businesses that need to borrow money to finance their operations or expansion.

What is First Mortgage Loans?

First Mortgage Loans are mortgages the borrower opens as the first line of credit against their home. The loan will be approved case-by-case basis according to the borrower’s circumstances. This flexible financing option is suitable for first-home buyers and investors.

First Mortgage Loans in Australia come with a range of features, including:

  • Instant Approval – You can apply now and if your application is successful, you will be immediately given an offer.
  • No credit check or income verification is required – if you can prove that you have enough money to make the payment, then this will be considered by our team.
  • Accessible interest rates – our funds are available with fixed or variable rates, so there’s no need to pay more than you need to.

How does First Mortgage Loans work in Australia?

In Australia, First Mortgage Loans​ is a type of home loan that allows individuals to borrow money from a lender to purchase a property. The property is used as collateral for the loan, and the lender has a legal right to repossess the property if the borrower defaults on the loan. First Mortgage Loans typically have a fixed or variable interest rate, and the borrower is required to make regular repayments to the lender until the loan is fully repaid. The loan is usually repaid over 25-30 years

When you take out a first home loan, you should be aware of some important things:

  • You’ll need to have enough income and savings to meet repayments. This includes any income from other sources such as dividends from shares or rent payments. We have a smooth procedure to apply for such loans. All we will need from you is a little verification and that is it.
  • Our loan expert will review your documents and get back to you with approval of the loan within a few days.

Reasons why First Mortgage Loans is best for you!

Here are some scenarios in which you could look at the First Mortgage Loans in conjunction with the second mortgage and another type of loan:

  • Letting equity out of your home for improvements prepares your home to be offered for sale.
  • The payment of an urgent high, often unanticipated cost.
  • A small residential subdivision or development is completed to pay for construction costs before cash from sales is received.

People from Australia might consider the possibility of a short-term mortgage for a home to raise funds for business. A typical use for business financing includes working capital for a short time to cover the cost of purchasing stocks, slow invoice payment, tax invoices, and other such issues.

We have developed easy eligibility criteria for funding so all applicants who need the funds get their share. To ensure that the process is as smooth as possible, you will have all the documents to start with the loan procedures. Ensure your credit score is in order before applying. However, it doesn’t need to be perfect, as we also consider applicants with bad credit histories or scores.

Advantages of First Mortgage Loans

  • Low- or no-down-payment loans
  • Flexible repayment options
  • The interest rate will vary depending on your loan request
  • A lower interest rate compared to other types of loans, such as a second mortgage or home equity loan
  • A larger loan amount may be available, as the first mortgage is typically the primary loan used to purchase a home
  • Interest paid on a first mortgage loan may be tax-deductible
  • The lender has a priority claim on the property if the borrower defaults on the loan

Disadvantages of First Mortgage Loans

  • Lower loan amount, if you’re a first-timer
  • Limited home equity to start
  • Income limits
  • A larger amount of money is required for a down payment
  • The repayment term is typically longer, which means more interest will be paid over the life of the loan
  • If the property value decreases, the borrower may owe more than the property is worth (i.e. “underwater” on the mortgage)
  • If the borrower defaults on the loan, the lender can foreclose on the property. This can result in the borrower losing their home and damaging their credit score
  • If you miss the payments the lender has the right to foreclose the property, which can lead to losing the property and damaging your credit score

Already made up your mind? Awesome.

Contact us and we will make the process very simple and easy for you!

Flexibility

With flexible options up funding is possible in 24 hours

Support

Common sense credit approval process. Fast and fuss free funding on your terms

Confidence

No hidden fees and or charges. Clear & upfront pricing

Case Study: First Mortgage for a Business Owner in Melbourne

One of our clients, Mr Smith, is an owner of a business in the energy sector in Melbourne. Due to an emergency, he urgently needed funds of around $600,000. He had ownership of the property. Nonetheless, Smith approached the bank to obtain the needed amount but his credit file became blemished due to unanticipated financial problems during the pandemic. Therefore, the bank could not give him the amount.

In desperate need, Smith reached out to us and asked for his first mortgage. Our experts immediately understood the requirement, analyzed the property, and got him immediate approval. After evaluating the situation, we referred him to one of our highly regarded private lenders.

Thankfully, the private lender instantly approved his loan request. After that, we sent the agreement and penned it with mutual understanding. Later, 12 months after the repayment agreement, the client could pay on time.

Nonetheless, we received feedback from the client, who was extremely pleased about the prompt agreement of the First Mortgage Loans that allowed him to generate handsome revenue out of his energy business.

Case Study: First Mortgage for a Small Business Owner in Australia

Brian, one of the prominent customers, was a farm owner in Australia who needed urgent cash to purchase brand-new farm machinery. After many days of back-and-forth communication with the bank, they declined his request for a loan.

Even though his property was located in rural QLD and is valued at $1400,000. He still couldn’t land a loan from the banks.

Brian became very worried since he needed money to repair the farm equipment and get his business back on its feet. He contacted us via the Internet and asked for an initial mortgage. We know the importance of time, and that’s why we walk the customer through the process following the initial approval. After an assessment, we connected him with one of our lenders who agreed to give him a loan for 12 months. The amount was $250,000, an approved contract signed for 12 months. Whereas, later, it’s repaid a month before the agreed term. He is now content and on the right track in his business.

Frequently Asked Questions (FAQs)

What exactly is a mortgage trust?

The mortgage trust is a kind of product for investment. In Australia, it’s usually an investment management scheme (MIS), often called a mortgage scheme or trust, but it could take other forms. Likewise, it is and will continue to be a highly sought-after option for all kinds of investors, including retail “Mum and dad” investors, sophisticated investors, wholesale investors, and even recently Self, Managed Super Funds (SMSF) Investors.

What is a first-time mortgage loan?

The first time mortgage loan is a loan that individuals acquire to purchase a property. The lender becomes the first rightful claimant until the repayment is completed successfully. If there is a loan repayment default, the property may be sold and paid back to members to recover the loan. Our investments are protected by an approved first mortgage loan to Australian property.

What kind of security for the first mortgage loan is offered?

The security property differs between loans. However, every loan is secured by commercial or residential property across Australia.

What kind of borrowers lends money for my first mortgage loan?

The borrower must possess Australian property as security, the capability to make their payments, and a repayment strategy that allows them to end the loan after the term. However, our mortgage loans are tailored to those who require a quick and flexible option. In addition, the cost of short-term loans is higher than traditional financing, and that’s why we can offer better returns for our clients.

What exactly is the process of a First mortgage loan?

Generally, after an investor has registered and approved the first mortgage loan, they can choose to invest and manage their investments using our platform and professional management team. The investors can decide to completely fund a Loan or support other members in a specific Loan.

What is the Funding Investment Trust?

The Funding Investment Trust is the legal basis for the platform. Generally, the Funding Investment Trust (“Trust”) is an ASIC registered and ARSN managed investment scheme in which those who belong to the Trust have access to mortgage loans as first-time investors.

What's your LVR on loan?

The loan ratio to value (LVR) is the most significant element of the loan secured by the property. The LVR is unique to the mortgage chosen by the investor. The LVR must not exceed 90% of the worth of the secured property.

When will I get paid with the first mortgage loan?

Once the repayment to the monthly online fund account is completed. You can decide to reinvest the funds or transfer them to your bank account of a choice within a minimum of 3 working days to process withdrawals.

What is the method by which the interest rate is calculated on the first mortgage loan?

In the loan application, Basic Finance and the lender can agree on an appropriate interest rate based on the LVR and property’s location, and other variables.

Talk to a business lending specialist

Leave your details below and one of our Business Lending Specialists will get in touch right away.