Private first mortgage business loans: the 24–48 hour timeline

A private first mortgage is where the biggest amounts in fast business lending sit — up to $5m against property, with 24–48 hours possible when things line up. It’s also the option with the widest range of timelines, because “first mortgage” covers two quite different jobs: lending against a property with nothing owing on it, and replacing a lender who’s already there.

Clear title or refinance: why does it matter?

	Clear-title first mortgage	Refinance first mortgage
Existing loan on the property	None	Yes — paid out at settlement
Payout figure needed	No	Yes
Outgoing lender at settlement	No	Yes
Typical valuation	Depends on amount and property	Depends on amount and property
Where the time goes	Valuation and signing	Payout figure, valuation, signing

On a clear title, the stage list looks much like a caveat loan’s, just with a registered mortgage at the end. On a refinance, there’s a whole extra party — the outgoing lender — with its own processes. The Reserve Bank’s settlement system handles electronic property settlements in batches during the business day, and the refinance can only join a batch when both lenders are ready.

How does a 24–48 hour first mortgage unfold?

Illustrative planning timeline, not a promise. For a refinance of about $1.2m against residential property, paperwork ready, enquiry at 9am on a Tuesday, using the 24-Hour Funding Clock assumptions:

When (Sydney time)	Stage
Tue 9:00am	Enquiry lands — payout figure requested from the existing lender the same morning
Tue morning	First call and assessment
Tue late morning to Wed morning	Detailed valuation — inspection and report
Wed late morning	Approval and documents signed
Wed around midday	Payout figure confirmed, settlement booked
Wed early afternoon	Settlement: old mortgage discharged, new one registered, balance released

That’s roughly 28–30 hours from enquiry. If the payout figure isn’t requested until approval, the same loan can take several business days.

What pushes a first mortgage past 48 hours?

• The payout figure — requested late, or slow to arrive. See payout figures.
• A complex valuation — commercial, rural, mixed-use or high-value property. See the valuation stage.
• Multiple owners or a trust needing to sign or produce documents. See property ownership.
• Arrears or defaults on the existing loan that need confirming in the payout figure.
• Weekends and holidays, when property settlements don’t happen.

Why choose a first mortgage over a faster option?

Speed isn’t the only thing that matters. A first mortgage can make more sense when:

• the amount is larger than the equity above an existing loan comfortably supports;
• the existing loan is maturing, in arrears or unhelpful, so replacing it solves two problems at once;
• one loan is simpler to manage and exit than two;
• the property is unencumbered and the lender wants first ranking for a larger advance.

A specialist weighs those against your deadline on the first call. If time is the overriding factor and there’s enough equity, a second mortgage or caveat loan might get you there sooner. If you want that weighed up for your situation, start your 60-second enquiry.

What will you need ready?

1. ID for every borrower, director, owner and guarantor.
2. Six months of business bank statements.
3. The latest statement for any existing loan, and a payout figure request lodged.
4. A council rates notice and, for commercial property, any leases.
5. Trust deeds or company documents where the owner or borrower isn’t an individual.
6. Your ATO position.
7. A clear exit plan and every signatory available.

Illustrative example: the maturing loan

Illustrative scenario only. A Melbourne food manufacturer’s private loan of about $900k against its factory is maturing in a week, and the business also needs about $400k for new packaging equipment. A second mortgage won’t help — the first loan has to go. The directors enquire on a Monday morning and request the payout figure that afternoon. A full commercial valuation is done on Tuesday with the report following Wednesday morning. Documents are signed Wednesday, the payout figure is confirmed, and settlement happens Thursday morning — around 72 hours in total, driven mainly by the commercial valuation. Had they left the payout request until approval, the maturity date would have passed.

Clear-title first mortgages: the quiet fast lane

Owners sometimes forget that a property with nothing owing on it is one of the strongest positions in fast lending. With no existing lender to pay out, no payout figure to wait for and no discharge to co-ordinate, a clear-title first mortgage behaves much like a caveat loan on the clock — the valuation and signing set the pace.

That makes it worth checking every property you or the business own, not just the family home. A small commercial unit, an investment house or a block of land held without debt can sometimes secure a larger amount more quickly than a home that already carries a bank mortgage. The trade-offs are the usual ones: every registered owner has to sign, the valuation depth depends on the amount and property type, and the exit needs to fit the term. A specialist can compare the options side by side on the first call.

Weigh speed against structure with a real person

The right first mortgage can solve a deadline and tidy up your borrowing at the same time. Enquiring takes about 60 seconds with no credit check when you first enquire. Your details go to one team, not out to a crowd of lenders, and a real person works out whether a first mortgage, second mortgage or caveat gets you to your deadline best. Please be accurate about existing loans and the property’s owners — those details set the timeline more than any other.

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