The primary considerations of a property flip using borrowed money are a great broker and choosing the right lender before making an offer. This round of “best lenders for short-term property renovating loans in Australia” searches ends up in seemingly endless lists of short-term lenders for property renovations by brokers (including the next paragraph). Brokers and referrers receive commissions when settling a loan. For example, Private Mortgages Australia pays its referrers within 24 hours of settlement, and Andorra Private states that its brokerage is payable on signing the letter of offer. This article does not rank the lenders.
It does not, however, do any of that. Instead, each deal profile is matched with a suitable lender type, presented with the published terms of identified lenders, and the full cost of a hypothetical reference loan. Information sources include Macquarie, La Trobe Financial, Private Mortgages Australia, Mint Money, Bridging Loans Australia and Andorra Private. The author is not a broker or a financial adviser and all rates were published on these sites in 2026 – check each term with the lender.
The Flipping Property Lender-Fit Router
Focus on deal details before lender details. Here’s a table matching five typical flipping property types with five lender options:
Your deal | Lender type that fits | Why |
Cosmetic refresh, you manage the trades, 3 to 6 months | Private or non-bank short-term lender | Bank construction loans need a licensed builder and a fixed-price contract |
Extension or structural work under a licensed builder, 9 to 18 months | Bank or non-bank construction loan | Staged progress payments suit a long build |
Buying before your current property sells | Built to carry two properties | |
Cash shortfall mid-renovation | Bridging broker panel | Short, flexible, sized on end value |
Fast settlement, cannot show bank servicing | Private lender | Lenders in this group target that borrower |
Put simply, in the pages reviewed, the cheapest rate belongs to the lender with the strictest conditions. The next sections show how.
Route One: The Bank Construction Loan for Flipping Property
Macquarie’s construction loan brochure represents the more conservative end of the range. They will provide up to 80% LVR or the lower of: the as-if-completed valuation, or the cost to complete, with full licensing for the builder; fixed priced and fixed term contract with progress payment schedule, and the brochure states owner-builders are not accepted. Two-year interest-only period is required. While renovations are acceptable under the alterations-and-additions purpose, only the owner-occupied example is provided and no mention is made of investors.
Lenders such as ANZ, Liberty Financial, Pepper Money and Macquarie are on the panel of the brokerage, Mint Money. They point out renovation cashflow is paid in draws when work is carried out by a licensed builder, and that self-funded renovations do not come within the construction loan.
This walk should be used by a flip handled by a professional builder. An investor who negotiates all his own trades does not belong on this walk.
Route Two: Bridging and Short-Term Lenders in Flipping Property
La Trobe Financial bridging page which covers the reasons for buying or building, an interest period of up to 2 years, a maximum of 80% LVR on up to $5m, and our variable rate of 8.29% p.a. with an application fee of 1.25%. Interest accruing on the loan so no repayments are required during the bridging period. We are not sure about renovation or flips so best to ask before making an assumption.
Private Mortgages Australia has a split facility-money for purchase, then renovation. It provides up to 70% of the as-if-complete value on loans from 3 to 12 months, with first mortgage loans up to $5 million. It says settlement can be completed within five days of having all the documents and full information and it is after borrowers that don’t have bank serviceability. Rate is undisclosed.
Andorra Private mentions a divided facility based on completion and certification of works. It states the majority of renovation lenders lend between 65% and 80% of the works completed value at around 8% to 12% p.a. capitalized. Its excluded disclaimer notes that it advises and provides broking services only and so you should verify if you are dealing with a lender or broker.
Lenders have different predilections on a point that affects cash flow: phased drawings or one lump drawdown.
Bridging Loans Australia – a brokerage – adds that most private lenders prefer one at-settlement drawdown than progress payments. Andorra comments that staged release is. It is best to ask each lender what they do.
What Each Flipping Property Lender Publishes: A Side-by-Side
Source | Type | Max LVR basis | Term | Rate and fees stated |
Macquarie construction | Bank | 80% of lower of as-if-complete or cost | 2-year interest-only | Example 5.8% for owner-occupied |
La Trobe bridging | Non-bank | 80% up to $5m | Up to 2 years | From 8.29%; 1.25% application fee |
Private Mortgages Australia | Private lender | 70% of as-if-complete | 3 to 12 months | Not published |
Bridging Loans Australia | Broker | 70% to 75% | 1 to 12 months | 8.95% to 11.50%; 1.5% to 2.5% fee |
Andorra Private | Broker or lender | 65% to 80% (general) | 6 to 24 months (general) | 8% to 12% (general) |
A blank cell means the page does not say. A “general” entry means the page describes the market, not its own product.
The Flipping Property Equity Gap: Loan-to-Value Matters More Than Rate
Let us consider a hypothetical flip property: Buy for $650,000 with $90,000 renovation budget and a projected as complete value of $900,000. Total cash required is $740,000. The following table shows the amount of cash required at different loan to value (LTV) ratios, duty and other costs not included.
Loan-to-value on $900,000 | Loan | Cash you bring |
65% | $585,000 | $155,000 |
70% | $630,000 | $110,000 |
75% | $675,000 | $65,000 |
80% | $720,000 | $20,000 |
So $80k minus $65k loan-to-value will equal $135,000. For those considering our cash gaps at 65% or 80% loan-to-value, please feel free to plug in your own numbers for a free feasibility test using Flip Sync IQ and to see how the various lenders compare before you apply. No difference in the rates can make up for this much of a difference in financing. A lender that has a slightly better rate and a 65% loan-to-value could cost you more cash than a lender with a slightly worse rate and 80% loan-to-value.
Six Months of Flipping Property Cost on a $630,000 Loan
Simple interest per annum of 70% loan for a period of 6 months P I S. Do not consider the effect of compounding. Valuation costs, legal costs and discharge costs are other costs to the loan, according to Bridging Loans Australia; valuation1,200–2,500, legal1,500–3,000, discharge400–1,200.
Rate source | Interest (6 months) | Establishment | Total |
La Trobe “from” rate, 8.29%, 1.25% fee | $26,114 | $7,875 | $33,988 |
Broker range low, 8.95%, 1.5% fee | $28,193 | $9,450 | $37,642 |
Broker range high, 11.50%, 2.5% fee | $36,225 | $15,750 | $51,975 |
The range between the lowest and highest value is $17,987. LaTrobe’s rate is a starting rate, it may not be available to a property flip. These broker ranges are indicative and are not dealer specific. These should be used to compare quotes, not as quotes.
Additional extension fees of 1% – 2% for another one to three months are also noted, which are common when you experience a sale that takes a little longer to settle. At $630,000 that’s an extra $6,300 – $12,600.
What a Flipping Property Lender Asks For
Mint Money include sufficient income for the borrower to service the loan during the project, deposit/ equity of 20% or more, detailed renovation plan, scope, budget, timeline, an appropriate exit strategy and clear credit history. Although having a good track record is advantageous, first-time property-flippers would also be able to access finance. Sales should generally be completed within six to twelve months.
Both sites would argue for a contingency plan – 10-20% of renovation costs on Mint Money and 10-15% on Bridging Loans Australia. If there’s no contingency – this can be read as no stress-testing to the lenders.
How FlipSync IQ Supports Flipping Property Lender Conversations
Lenders look at the same four items that your clients should look at: the end value, the cost, the timing, and the exit. Flip Sync IQ’s deal analyzer provides an ARV simulation based on incremental maximum purchase prices and includes margin protection so you can see your loan-to-value and cash gap. Holding costs are input on the timeline so that extension fees can be shown as a specific dollar amount prior to being committed.
The Investor Package Report is designed to attract private lenders and financial partners. It covers comparables from the recent time period, custom comparative market analysis data, pre- and post-photos (space to insert), projected equity splits, and expected return on investments. After settlement, staged payments, receipts, and invoices are tracked to the budget, and the ROI dashboard compares projected to actual returns for each draw request.
Flipping Property: Choosing Among the Best Lenders for Short-Term Property Renovation Loans in Australia
According to your deal profile you are a great fit for a short-term property renovation loan The deal profile more suited to each product: A project managed by a licenced builder: construction loan A quick cosmetic flip: short-term private loan A purchase ahead of sale: bridging loan Property flipping success on any of these options is always dependent on the same fundamentals: equity gap, extension timeframe & draw method.
Prior to an application, loan applicants will need to prepare an ARV, a budget (including contingency), timeline, and exit strategy. Then they should evaluate each lender to see which has the best offer on a loan-to-value ratio, total cost for 6-month term, and draw structure. When asked “who are the best lenders for short-term property renovation loans in Australia” the answer is better understood as a method. You’re welcome to start a free Flip Sync IQ trial to compare on your own before applying.
Frequently Asked Questions
Who are the best lenders for short-term property renovation loans in Australia?
No impartial rankings. Most lists are broker written and often state settlement fee bribery. The best lenders for short term property renovation loan in Australia is deal-specific. It’s worth putting two or three lenders side by side and comparing deal-to-deal loan-to-values, six-month costs, draw schemes, and extension cost.
Can I get a bank construction loan for a flip that I manage myself?
That depends on the loan-to-value (LTV). Using an example final value of $900,000 and an all-up cost of $740,000, 70 percent of the loan is a $110,000 gap, while 80 percent is just $20,000. Mint Money says most lenders want a $20,000-plus equity investment from you.
How much cash do I need for a short-term renovation loan?
That depends on the loan-to-value (LTV). Using an example final value of $900,000 and an all-up cost of $740,000, 70 percent of the loan is a $110,000 gap, while 80 percent is just $20,000. Mint Money says most lenders want a $20,000-plus equity investment from you.
What does interest capitalised mean on a bridging loan?
What capitalised interest means in a bridging loan La Trobe says that future interest is capitalised, allowing for the absence of repayments throughout the bridging period. Future interest capitalised is repayable on sale or refinance and capitalised interest increases maximum debt and must be factored into the modelling.
What happens if my renovation sale takes longer than the loan term?
Of course with a Bridging Loans Australia, extensions are typically 1 to 3 months in duration and cost between 1% and 2%, or 0.01-0.02. Based on a $630,000 loan, an extension might cost between $6,300 and $12,600. We suggest planning for extension fees as part of your holding costs.
Do short-term lenders release money in stages or all at once?
It depends. Andorra Private mentions one round of “renovation” funding paid out gradually as work is carried out and checked. Bridging Loans Australia comments that generally private lenders prefer one lump sum paid out on settlement. You should ask the lender first before applying.
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