Private Lenders in Victoria
Published 8 August 2026 · Last reviewed 8 August 2026 · Figures verified against State Revenue Office Victoria
Private lenders operate across Victoria, funding Melbourne development and construction, bridging finance, and commercial and rural security in the regions. Victoria differs from other states in one important way: it charges a different duty scale depending on whether the property will be your home, and the concessional scale stops at $550,000.
Private lending in Victoria
Victoria is the second largest private lending market in Australia. The bulk of it is Melbourne residential development and construction funding, bridging loans between settlements, and short-term commercial facilities. Regional Victoria is better served by private lenders than most other states' regions, because the larger centres are genuinely liquid markets rather than single-industry towns.
As everywhere, a private lender prices the exit rather than your income. Melbourne metropolitan security attracts the sharpest terms and the highest LVR; the larger regional centres are usually treated close to metropolitan; smaller towns and rural land draw a lower LVR and a higher rate because a forced sale would take longer.
One further Victorian consideration is the vacant residential land tax, which applies to residential property left unoccupied for extended periods. If your exit strategy involves holding a completed dwelling empty while waiting for a better sale price, that holding cost is real and belongs in the numbers.
Victorian stamp duty rates and thresholds
| Dutiable value | Duty payable |
|---|---|
| $0 to $25,000 | 1.4% of the dutiable value |
| Over $25,000 to $130,000 | $350 plus 2.4% of the value over $25,000 |
| Over $130,000 to $960,000 | $2,870 plus 6% of the value over $130,000 |
| Over $960,000 to $2,000,000 | 5.5% of the whole dutiable value |
| Over $2,000,000 | $110,000 plus 6.5% of the value over $2,000,000 |
| Dutiable value | Duty payable |
|---|---|
| $0 to $25,000 | 1.4% of the dutiable value |
| $25,001 to $130,000 | $350 plus 2.4% of the value over $25,000 |
| $130,001 to $440,000 | $2,870 plus 5% of the value over $130,000 |
| $440,001 to $550,000 | $18,370 plus 6% of the value over $440,000 |
| Above $550,000 | The concession does not apply — general rates apply |
The $960,000 point on the general scale deserves attention. Below it, duty is calculated marginally. At $960,001 the scale switches to a flat 5.5% of the entire dutiable value, so duty does not step smoothly — a purchase just over the line can attract noticeably more duty than one just under it. Anyone negotiating near that figure should calculate both sides before agreeing a price.
Victorian first home buyer grants and concessions
| Benefit | Threshold | Applies to |
|---|---|---|
| First Home Owner Grant — $10,000 | Value up to $750,000 | New or substantially renovated homes only, never previously occupied |
| Full duty exemption | Value up to $600,000 | New or established homes |
| Concessional duty | Over $600,000 up to $750,000 | New or established homes, tapering as value rises |
The distinction that catches people out is that the grant is restricted to new homes while the duty exemption is not. A first home buyer purchasing an established house at $580,000 pays no duty but receives no grant; one buying a new apartment at $580,000 gets both.
The Victorian duty exemption ceiling of $600,000 is $200,000 below the NSW equivalent, which is worth knowing if you are comparing states — a first home buyer at $700,000 pays concessional duty in Victoria but nothing at all in New South Wales.
Victorian property market context
We publish no medians, growth rates or yields here, because we hold no licensed source for them. The statutory thresholds are verifiable and say more than an unsourced number would.
The Commonwealth set Victoria's Help to Buy caps at $950,000 for Melbourne and regional centres and $650,000 for the rest of the state, against $1,300,000 and $800,000 in New South Wales. Those caps are calibrated to what a buyer needs to spend, so the roughly 27% gap is an official read on the difference between the two markets.
Victoria's own thresholds tell a second story. The first home buyer duty exemption stops at $600,000 and the PPR concessional scale stops at $550,000 — both set well below the NSW equivalents, and both unchanged while prices moved, which is why a growing share of Victorian first home buyers now fall outside the concessional scale entirely.
For borrowing purposes the practical effect is that Victorian deals are typically smaller than comparable New South Wales ones, and duty is a proportionally larger share of the cash needed at settlement above $960,000 because of the flat-rate band. Both belong in the numbers before you set a purchase price.
Lending considerations specific to Victoria
Model the $960,000 boundary deliberately. Because duty above that point is calculated as a flat 5.5% of the whole value rather than marginally, a purchase price agreed just above it costs more in duty than the price difference alone suggests. On a private facility where you are funding the duty from equity, that directly changes how much you need.
Check whether the PPR scale applies before assuming a duty figure. Investment purchases and any purchase over $550,000 use the general scale, which is meaningfully more expensive at the same value — a common source of a shortfall at settlement when a buyer has used the wrong table.
For development and construction facilities, tie the term to the planning position rather than to an optimistic build program. Victorian permit timelines vary widely between councils, and an extension on a private construction loan is priced, not free.
How to apply
Come with the security address, the price or current value, the amount and term you need, and the exit — how the loan will be repaid. For a Victorian development or construction deal, add where the planning permit sits, because that drives the term.
Calculate the duty on the correct scale before you set the purchase price, and check whether you sit either side of the $960,000 flat-rate boundary or the $550,000 PPR ceiling. Both change the cash you need at settlement, which changes the loan.
VIC private lending FAQs
How much is stamp duty in Victoria?
It depends on the scale that applies. On the general scale, a property valued over $130,000 up to $960,000 attracts $2,870 plus 6% of the value over $130,000; between $960,000 and $2,000,000 duty is a flat 5.5% of the entire value; above $2,000,000 it is $110,000 plus 6.5% of the excess. A principal place of residence valued up to $550,000 uses a lower concessional scale.
Why does Victorian duty jump at $960,000?
Above $960,000 the general scale stops calculating duty marginally and applies a flat 5.5% to the whole dutiable value. That means duty does not increase smoothly across the boundary, so a purchase just above $960,000 can attract noticeably more duty than one just below it.
Can a Victorian first home buyer avoid stamp duty?
Yes, on a home valued up to $600,000, with a tapering concession between $600,000 and $750,000. That applies to both new and established homes. The separate $10,000 First Home Owner Grant is restricted to new or substantially renovated homes valued up to $750,000.
Do private lenders in Victoria lend in regional areas?
Yes, and regional Victoria is generally better served than most other states' regions because the larger centres are liquid markets. Expect a lower maximum LVR and higher pricing in smaller towns and on rural land, where a sale would take longer.
Does the vacant residential land tax affect a private loan?
It can affect the exit. If your plan is to complete a dwelling and hold it unoccupied while waiting for a better price, that holding cost is real and should be modelled alongside the interest, because it reduces the margin the loan was written against.
General advice warning: this page provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit, tax or financial advice.
Duty rates, grants and thresholds shown are Victoria figures verified on the review date above. They change with each state budget, and VIC thresholds may be indexed annually — confirm the current figures with State Revenue Office Victoria before relying on them.