Mezzanine Finance for Property Developers & Builders in Australia
Bridge your funding gap, increase leverage, and deliver your project without giving up equity. Fast, Flexible Funding to Keep Your Development Moving
-
Funding from $250k
-
Short 3 – 36 month terms
-
First and second mortgage options available
-
Bridge the equity gap between your loan and total development cost
Do you have a scenario you want to discuss now?
We’ll respond in 4 business hours.
What is Mezzanine Finance?
Mezzanine finance is a secondary layer of funding that sits between your senior construction loan and your equity.
It allows property developers and builders to close funding gaps, increase borrowing capacity, and move forward with projects that may otherwise stall due to insufficient equity.
In a typical structure:
- Senior lender funds ~60–70% of costs
- Mezzanine lender funds an additional ~10–25%
- Developer contributes the remaining equity
This structure helps you unlock higher leverage while maintaining control of your project.
When Should You Use Mezzanine Finance?
Mezzanine finance is commonly used when:
- You don’t have enough equity to meet senior lender requirements
- Your project is approved, but funding falls short
- You want to scale into larger developments
- You need to preserve cash for multiple projects
- Construction has started but requires additional
- funding to complete Traditional lenders won’t stretch to your required LVR
If your deal is strong but underfunded, mezzanine finance can bridge the gap and keep momentum.
Key Benefits of Mezzanine Finance
Increase Your Borrowing Power
Access higher total funding and take on larger or more profitable projects.
Preserve Your Equity
Avoid bringing in joint venture partners or giving away profit share.
Move Faster
Private mezzanine funding allows for quicker approvals than traditional
banks.
Flexible Loan Structuring
Repayments can be aligned to your construction timeline or end-of-project
exit.
Unlock Stalled Projects
Turn a “no” from a bank into a funded development opportunity.
How Mezzanine Finance Works
- Step 1: Secure Senior Debt - Your primary lender funds the majority of your project.
- Step 2: Add Mezzanine Funding - We provide a secondary loan to
bridge the funding gap. - Step 3: Complete & Exit - Repay both facilities through property sales or refinance upon completion.
Why Business Owners Choose Private Mortgages Australia
Fast settlements
Flexible terms
(3–36 months)
Up to 65% LVR
Up to $5 Million
Response time of
4
business hours
10+ years of private
lending expertise
How it works
Submit a scenario via the Quick-App form
Receive Indicative Offer
Formal Offer & Settlement (within 5 days)
We have a guaranteed response time of 4 business hours after receiving your Quick-App. Upon return of the fully executed documents the approval fee, legal costs and prepaid interest are deducted from the loan and the balance is paid to the borrower.
Brokers & Referrers: Earn Fees on Successful Deals
If you’re a broker or a referrer you can earn generous referrer fees when you introduce qualified borrowers.
Referrer fees paid within 24 hours of settlement - no clawbacks!
Your commission is guaranteed.
Transparent process and communication throughout.
If you have a client in need of finance, get in touch to find out how we can help and what you could earn by referring the scenario to us.
Case Study: Development Funding to Complete Townhouse Project
Scenario
A family investment company commenced construction of three townhouses in Altona North, Victoria, funding initial works from their own resources.
Their existing lender, a non-conforming first mortgage provider, would not fund the development, as it was their first project. Construction stalled when the builder walked off site due to an outstanding $330,000 invoice, leaving the project incomplete and at risk.
Why PMA
Traditional lenders were unwilling to assist due to:
- First-time development risk
- Existing lender limitations
- Project already underway
PMA assessed the underlying project value and completion feasibility, rather than relying solely on conventional lending criteria.
Solution
Traditional lenders were unwilling to assist due to:
- Provided an urgent second mortgage construction loan to fund completion
- Structured funding on a cost-to-complete basis
- Arranged an “as-if-complete” valuation and quantity surveyor report
- Allocated funds to settle the builder and restart construction
The project was completed successfully, with the loan repaid in full within two months through the sale of two townhouses.
Do you have a scenario you want to discuss now?
We’ll respond in 4 business hours.
Client Success Stories & Testimonials
★ ★ ★ ★ ★
My dealings with PMA, on behalf of my client, were handled in a very competent and professional manner. From loan application to settlement we were at all times kept informed, which allied any client concerns. Professional, efficient service concluding in timely settlement....
Peter McAuley
2019-01-11 02:28:37
★ ★ ★ ★ ★
I have found Private Mortgages Australia to have a high standard of skill, care and integrity. Their unique lending products can assist clients in many useful ways. Used the right way PMA is an efficient tool which can enhance clients' financial strength....
Janette T - Mortgage Broker, Melbourne
2017-01-04 05:55:42
★ ★ ★ ★ ★
My first dealing with Peter at PMA was very easy and resulted in a happy client. It was during the festive season too which usually makes it tougher but it all went well. Thanks again Peter, from myself and my client....
Don F - Mortgage Broker, Melbourne
2025-01-19 05:59:12
★ ★ ★ ★ ★
We are very happy with our investment in PMAC Trust. The team at PMA do a wonderful job exceeding the target return....
James B - Portarlington VIC
2018-04-13 04:33:02
Have more questions?
Book a call with one of our Relationship Managers and they can further explain the lending process and how the referral fee structure works.
Meet the team
Dushen Tissera
Dushen has a holistic understanding of the credit process from start to finish and is able to ensure that our loans are all in line with the customers and investors requirements.
Phone: 0477 509 779
Brendan Barry-Murphy
With a remarkable career spanning over 30 years at the Commonwealth Bank of Australia and experience as a mortgage broker, Brendan brings a wealth of knowledge and an insider’s perspective on what brokers and clients need most.
Phone: 0427 981 081
Our Relationship Managers will walk both brokers and borrowers through the entire process, from initial application to settlement.
