A first mortgage is the senior secured loan over a property — the lender holds the first registered mortgage on title. If the property is ever sold, refinanced or repossessed, the first-mortgage holder is paid in full before any other secured creditor sees a dollar.
In private credit, first-mortgage backing is the highest-quality security available. Archer Wealth's loan book is 100% first-mortgage backed across the wholesale trust, with concentration limits and conservative LVR caps written into the trust eligibility criteria.
For borrowers, a first mortgage usually carries the lowest interest rate available for a given property because the lender's risk is lowest. For investors in a private credit fund, first-mortgage backing is the structural protection that distinguishes the asset class from unsecured lending or mezzanine debt.