Fee guide
Private Lending Fees
Private lending fees are structured differently from standard bank lending. This page provides a general overview so you know what to expect before signing any engagement.
The information on this page is a general overview. Your specific obligations will be set out in the mandate and engagement letter you sign with us. We encourage you to read that document carefully and ask questions before proceeding.
How it works — start to finish
Before any engagement begins, we provide a mandate that outlines the scope of our work and the associated fees. There is no pressure to sign — take the time you need to review it.
Once the mandate is executed, we complete the following work on your behalf:
- —Deal assessment and confirmation that financing is achievable
- —Search across our lender panel to identify the best match for your deal
- —Credit submission preparation and presentation to the chosen funder
- —Negotiation of the loan — amount, term, and conditions
- —Receipt and review of the letter of offer from the funder
By the time a letter of offer is issued by the funder, the substantial work involved in arranging the facility has been completed. This is an important distinction from consumer mortgage broking, where the broker is typically paid by the lender at settlement.
Two important differences from bank lending
1. Fee earned at letter of offer
Our brokerage fee becomes payable when the funder issues a letter of offer — not at settlement. This reflects the fact that the work involved in arranging the facility is substantially complete at that point.
In practice, payment is often deferred until settlement as a courtesy. However, the obligation arises at letter of offer. If the loan does not proceed to settlement after a letter of offer has been issued, the brokerage fee remains due.
This is standard practice in commercial finance broking and will be clearly set out in the mandate you sign before any work begins.
2. Security interests are standard
Lenders on our panel will register a mortgage or caveat over the security property offered — this is standard practice in all secured lending.
In some cases, if brokerage fees remain outstanding, we may also register a security interest. All registrations are discharged promptly following settlement and payment of all fees.
Costs you may encounter
The following is a general guide to the types of costs involved in a privately arranged commercial loan. Not all of these will apply to every deal — your mandate will specify exactly which fees are relevant.
Brokerage fee
Our fee for arranging the facility — covering deal assessment, lender matching, credit submission, negotiation, and securing a letter of offer from the funder.
Commitment fee
A fee charged by the funder for holding the facility open. This is typically payable regardless of whether the loan proceeds to settlement.
Valuation fee
The cost of an independent property valuation instructed by the funder. Payable regardless of the outcome of the valuation.
Legal fees
The funder's solicitors prepare the loan documentation — the loan agreement, mortgage, and related security documents. This is standard in secured lending.
Registration and discharge fees
Government statutory charges for the registration and subsequent discharge of mortgages and other security interests.
Want to discuss fees before proceeding?
We're happy to walk through the fee structure on any deal before you sign a mandate. Call 0480 521 605 or email us directly.