Private lending in the ACT, Tasmania and the NT

The ACT, Tasmania and the Northern Territory are smaller property markets than the big eastern capitals, but plenty of business owners there hold valuable property and need funding faster than a bank can provide it. The private lending approach is the same: look at the property, the purpose and the exit.

Canberra and the ACT

Canberra’s economy is anchored by government and the businesses that serve it: consulting, IT, construction, health and hospitality. Property values are relatively high, and many owners hold solid equity.

The ACT has a unique land system. Rather than freehold, land is held under Crown leases, typically for 99 years. For lending purposes, this makes little practical difference. Crown leases are bought, sold and mortgaged much like freehold elsewhere, and lenders and valuers are entirely familiar with them. The lender’s solicitor will check the lease terms and purpose clause, which sets out what the land can be used for.

Common ACT security includes houses in established suburbs, townhouses and units, and commercial and industrial property in areas such as Fyshwick, Mitchell and Hume.

Tasmania

Tasmania’s property market has grown strongly over the past decade, especially in Hobart and Launceston. Tourism, food and beverage, aquaculture and construction underpin much of the small-business economy.

Tasmanian land is registered with the Land Titles Office within Land Tasmania, and dealings are lodged electronically. Hobart and Launceston have enough sales activity for efficient valuations. Regional towns and rural holdings take longer and may attract lower limits.

Common Tasmanian security includes homes in Hobart’s suburbs and the Huon and Derwent valleys, Launceston and the Tamar Valley, and the north-west coast, along with commercial and light industrial property.

The Northern Territory

Darwin’s economy is shaped by defence, government, resources and tourism. Its property market has been more volatile than the eastern capitals, with periods of sharp growth and decline. Lenders tend to be more conservative with Darwin property, especially units, and may lend a lower proportion of value. Standard homes and well-located commercial property are still accepted.

Alice Springs and Katherine are considered, though with more caution. Remote property, and land held under Aboriginal land rights or affected by native title, generally can’t be mortgaged in the usual way.

What owners in these regions borrow for

• government contractors bridging long payment terms
• tourism and hospitality operators preparing for peak seasons
• construction and trade businesses funding materials and wages
• food, beverage and aquaculture producers buying equipment or stock
• clearing ATO debts before enforcement escalates
• buying commercial premises

Valuation time in smaller markets

With fewer sales to compare, valuers in smaller markets sometimes need longer to settle on a figure, and lenders may be more cautious with property that’s unusual for its area. If timing is critical, tell us early and send as much detail about the property as you can, including recent comparable sales if you know of any. A desktop valuation may be possible for standard homes in Canberra, Hobart and Darwin.

A worked example

A Fyshwick IT services company won a federal government contract with payments due 30 days after monthly milestones. It needed $280,000 to hire contractors and buy hardware ahead of the first payment. The bank wanted the contract to run for a quarter before increasing its facility.

The director owned a townhouse in Kingston with modest debt. A private lender took a second mortgage, settling in five business days. The term was nine months, with interest capitalised, and contract payments cleared the loan within six.

Working with us from anywhere

All deals are handled remotely. You’ll speak with our desk by phone and email, verify ID electronically, sign documents with your own solicitor and settle electronically. Local valuers inspect the property where needed.

Using property in another state

Owners in smaller markets sometimes hold property elsewhere, perhaps an investment unit in Sydney or Melbourne. Offering that property as security, alone or alongside local property, can widen the lender pool and improve the amount offered. The business and the security don’t need to be in the same state.

Costs to factor in

Each territory and state sets its own rates, land tax and other property charges, and the ACT in particular has moved much of its revenue onto annual rates and land tax. Lenders check these are paid before settlement, because unpaid amounts can affect the title. If anything is overdue, it can usually be cleared from the loan, which keeps the security clean for everyone.

Start your enquiry

Tell us where the property is and what the business needs. There’s no credit check when you first enquire, and your details aren’t shopped around. Accurate answers help us match you to a lender who knows your market. Check your eligibility, or read about caveat loans and then get started.