Private Credit in Australia 2026: What Brokers and Property Borrowers Need to Know About Lender Selection and Capital Certainty

Key takeaway: Private credit in Australia is attracting growing broker and regulator attention in 2026 — offering lender selection flexibility and capital certainty for property borrowers outside major bank criteria, while regulatory scrutiny is increasingly a quality signal rather than a red flag.

What Is Private Credit and Why Does It Matter in 2026?

Private credit in Australian property finance refers to non-publicly-traded loans arranged through private funds, family offices, or specialist non-bank lenders — as distinct from securitised mortgages or major bank lending. For property borrowers, this includes bridging finance, development funding, short-term construction loans, and private first or second mortgages.

GCI Funds CEO Ben Skilbeck, speaking to Australian Broker, highlights three pillars brokers need to assess when recommending private credit: lender selection, capital certainty, and why regulatory scrutiny — far from being a negative — is increasingly a quality signal in a fragmented market.

In 2026, with the RBA cash rate at 4.35% and major bank serviceability buffers stress-testing borrowers at even higher rates, private credit fills a genuine gap for borrowers with time pressure, unconventional income structures, or complex property arrangements.

"Capital certainty — knowing that the funds will be there when you need them — is one of the most important questions a broker can ask before recommending a private lender." — Ben Skilbeck, CEO, GCI Funds (via Australian Broker)

Lender Selection: Not All Private Credit Is Equal

A critical message for borrowers using private credit is that this market is not uniformly regulated. While institutional non-bank lenders holding an Australian Credit Licence (ACL) are subject to ASIC oversight and the National Consumer Credit Protection Act, some private lending arrangements — particularly at the commercial end — operate under less stringent requirements.

This means due diligence matters more in private credit than in traditional mortgage markets. Borrowers and brokers should verify:

• Whether the lender holds an ACL (for consumer credit transactions)
• The source and stability of the lender's capital
• The lender's exit strategy expectations and default provisions
• Full transparency on all fees, including establishment fees and exit fees

ASIC has flagged the private credit market for increased scrutiny in 2025–2026, particularly around consumer lending structures and managed investment schemes. Brokers recommending private credit must confirm the lender meets current regulatory standards.

Capital Certainty and Why It Protects Borrowers

Capital certainty refers to a private lender's ability to guarantee that approved funds will be available at settlement. Unlike major banks, some private credit providers source their lending capital from pooled investor funds — meaning a sudden redemption event could theoretically delay or collapse a settlement.

For time-sensitive transactions — such as bridging loans where the borrower has already exchanged contracts on a purchase — a private lender failing to settle can have serious consequences. The key questions for borrowers: Where does the lender's capital come from? Is it proprietary capital or pooled investor funds? Does the lender have a track record of settled transactions under similar market conditions?

Regulatory scrutiny, Skilbeck argues, is increasingly a way to separate credible private credit providers from less stable ones — a point that aligns with the view that ASIC oversight strengthens, rather than weakens, the case for properly licensed private lenders.

What This Means for MPFG Private Funding Borrowers

MPFG Capital's private funding and bridging finance products are designed for borrowers who need short-term capital certainty — whether bridging a property purchase, funding a development stage, or securing a time-sensitive opportunity. MPFG holds Australian Credit Licence 553698 and maintains full transparency across all fee structures.

As private credit receives more regulatory attention, MPFG's ACL-backed approach provides the compliance confidence that both brokers and borrowers require. If you are comparing private credit options, asking whether the lender holds an ACL and can demonstrate capital certainty from a verifiable source is a sound starting point.

FAQ

What is private credit in Australian property finance?

Private credit refers to non-bank lending arranged through private funds, specialist lenders, or family offices rather than through major bank or publicly-traded securitisation channels. In property, this commonly includes bridging loans, development finance, and short-term interest-only lending for borrowers who need faster decisions or have unconventional income structures.

How do I know if a private lender is legitimate in Australia?

For consumer credit, check that the lender holds an Australian Credit Licence (ACL) via ASIC's Connect register at connectonline.asic.gov.au. For commercial lending, verify registration and ask for references from settled transactions. Legitimate lenders will also be transparent about their capital source, full fee structures, and default processes.

Is private credit more expensive than bank loans in Australia?

Private credit typically carries higher interest rates than major bank products, reflecting higher risk tolerance and faster approval timelines. However, for transactions where timing is critical — such as bridging finance or development drawdowns — the cost may be offset by the certainty and speed that private credit provides. Always compare the total cost of funds, including establishment fees and exit fees, not just the headline rate.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).