What is Private Lending?

Private lending refers to loans provided by individuals or companies that are not mainstream lenders, often used by borrowers who don't meet traditional lending criteria or need funds quickly. These loans are typically secured against property, are usually short term (6-24 months), and often carry higher interest rates and fees. They can be faster to approve with less documentation and are sometimes called unregulated loans - useful in certain situations, but generally a short-term solution.

How is a Midkey loan different from a traditional home loan?

A Midkey loan has no regular monthly payments - principal and interest are deferred to the end of the loan. Midkey's assessment doesn't focus on your ability to make regular repayments, although your ability to pay priority debts is tested. There is no fixed loan term - the loan is usually repaid following the sale of your property, subject to the repayment triggers in your contract. At the end of the loan a Midkey Deferral Fee applies: a set proportion (your loan amount divided by your home's Agreed Initial Value) of any increase in your home's value, payable only if the agreed value increases.

Does a Midkey loan contain a no-negative equity guarantee?

Yes. With a Midkey loan you will never owe more than the value of your home, even if property prices fall. Your loan balance will not exceed your home's market value.

When Midkey may be a better fit?

A Midkey loan may be a better fit where flexibility matters more than timing: accessing equity without selling your home, avoiding additional monthly repayments, reducing financial pressure while making decisions, funding renovations, investments or life events, supporting children financially, or consolidating and restructuring debt.

Unlock Equity
With A Smarter Alternative to Private Lending

An Australian first, access your home equity on your terms with Midkey.

It takes less than three minutes to check your eligibility, with no impact on your credit score.

What is the current value of your home?

$1,000,000

$500,000

$10,000,000

How much do you owe on your mortgage?

$500,000

$800,000

How much would you like to borrow from Midkey?^*

^*Including the option to reduce your existing mortgage.

$200,000

$100,000

$300,000

Nearly there! Just enter your details below and submit to find out if you're eligible.

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Disclaimer: This content is provided for informational purposes only and without warranties of any kind. Use of the information is at your own risk.

As featured in

Meet Midkey
‍A more flexible solution to private lending

For many Australians, the family home is their biggest asset. When plans change, opportunities arise, or financial pressure builds, the products offered by a private lender might be appealing.

Private lending is often used when borrowers don’t meet traditional lending criteria or need fast access to funds. These loans are typically more flexible in their lending criteria, but often come with higher costs and shorter repayment timeframes.

That can work - but it can also come at a price.

That’s where Midkey is different.

Midkey vs Private Lending

Discover the differences between a loan from a private lender and a Midkey loan.

Private Lender

Loan term

No fixed loan term^{^}

Typically, short term (1 to 3 years)

Loan Purpose

High flexibility, with loans available for both business purposes and a variety of personal purposes

Loans may only be available for limited purposes

Interest and repayments

We charge simple interest, and
typically at a lower rate

Typically charge a higher interest rate, and generally requires regular repayments

Deferral Fee

We charge a Deferral Fee, which is based on the increase in your home’s Agreed Initial Value

No Deferral Fee, but typically charge a
high upfront fee

Regulated

Is licenced as a credit representative, which carries a range of legal obligations

May not have a credit licence, depending on the loan structure and purpose.

The total LVR of your property, including the outstanding balance of any loan secured by a first ranking mortgage, cannot exceed 80% for owner occupied freehold properties, or 75% for investment properties and apartments.

Information is provided for general comparison purposes only and does not take into account individual circumstances. Loan terms, interest rates, fees and eligibility criteria vary by lender and are subject to change. This information does not constitute financial advice. Before acting on this information, Midkey recommends that you seek independent professional advice.

^{^}Repayment triggers for your Midkey loan are included in your contract. The loan will need to be repaid if you default, if you increase your priority mortgage, if the LVR of your property exceeds 100%, if you move into an aged care, or if you die.

See if Midkey is right for you

Check Eligibility

Property Type

Owner-occupied house

Investment house

Apartments

Apartments/units must be in a complex of no greater than 20, be more than 12 months old, and have a minimum internal floor space of 50sqm.

Eligible Postcodes

Midkey is available in most Australian capital cities.

Check your eligibility

Sufficient Equity

You must have at least 20% usable equity in your owner-occupied house, or 25% for an investment house or apartment.

Usable equity is the portion of your property’s Agreed Initial Value that remains after subtracting any loan amount currently secured against your property.

Type of Home Loan

If you have an existing mortgage, it must be a standard ‘principal plus interest’ home loan.

Australian Citizenship

You are an Australian citizen over the age of 18.

Final Approval

Your application is subject to Midkey’s loan assessment and final approval.

What makes Midkey different

Discover the differences between a private lending loan and a Midkey loan:

Private
Lending

Traditional Home Mortgage

Reverse Mortgage

Bridging
Loans

No monthly payments

Looks at more than just your income

Long/no loan term

Available in addition to an existing mortgage

Welcomes a broad range of borrowers (18+)

Simple* accruing interest

Cheaper loan option

*Click here to learn more about ‘simple vs compounding’ interest.

Availability depends on lender and loan terms.

Trusted by borrowers
across Australia

Hear from Australians who made the Midkey move. Check out our latest reviews.

“The birth of your product has, without debt, given me a new lease on life and opportunity for myself and my kids. I can pay the school fees, renovate the way I want to, and see the house to pay back the loan.”

Cheryl (52)

Coogee

“By using my Midkey to pay off some of my existing mortgage, I have reduced the monthly payments by more than 50% so now I feel less constrained, freer.”

Mark (37)

Kellyville

“My only other option was to sell and downsize, but I hadn’t planned to do that for another five to ten years. Without Midkey I would have lost my life as it was.”

Dianna (68)

Mittagong

“I admit I was sceptical at first, but then I looked online and did my research to understand the model, and it made sense.”

Glenn (48)

North Epping

“Our dream of giving our eldest daughter a lump sum towards her deposit has come true. Instead of buying a one-bedroom apartment, now she can buy a three-bedroom house in a better suburb.”

Elizabeth (60)

Brisbane

Frequently asked questions

Take a look at the most commonly asked questions.

Learn more in FAQs

It’s simple. We’re here to help, whenever you’re ready.

Take your time, we’ll be here with helpful tools whenever you’re ready to act.

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Unlock Equity
With A Smarter Alternative to Private Lending

Meet Midkey
‍A more flexible solution to private lending