The rate that ends up on your file isn't picked from a table, it's set by the credit team based on the actual file. Two files at the same headline LVR can price differently because the security, sponsor and exit are different. The honest framing for a borrower: published indicative rates are a starting point, not the end of the conversation.
Input 1, security quality
The strongest pricing influence. Prime metro residential first mortgages price lowest. Apartments price slightly higher (resale market is more volatile). Commercial property prices higher again (specialised use, narrower buyer pool). Vacant land and development sites price highest within the suite (no income, longer sale cycle in distress).
Input 2, LVR
Within a security type, higher LVR prices higher because the recovery margin in distress is smaller. The pricing curve isn't linear, moving from 60% to 65% on a commercial file might add 50 basis points; moving from 65% to 70% might add 150. Above the standard envelope, files go to credit committee with structuring rather than a published rate.
Input 3, sponsor strength
Two files identical on security and LVR can price differently based on the borrower. A repeat sponsor with a clean track record and visible cashflow prices inside the range. A first-time developer with no track record or a borrower with adverse credit prices above. This isn't about discrimination, it's about default probability and the cost of working through any future arrears.
Input 4, the lender's funding cost
Less visible to the borrower but real. Archer Wealth funds its loan book through warehouse facilities, the Archer Wealth Investment Fund, P2P investors and balance-sheet capital. Each funding source has its own cost. As the wholesale funding market moves (RBA cash rate, wholesale credit spreads), the lender's cost of funds moves, and indicative rates move with it.
The published envelope
Archer Wealth publishes from-rates and LVR caps for each product on the private credit statistics page, reviewed quarterly: residential first mortgage from 6.99% p.a.; Edge flagship first mortgage from 7.85% p.a.; commercial first mortgage from 7.99% p.a.; bridging establishment fee from 1.25% of facility. Actual pricing on any specific file is set by the credit team based on the four inputs above. The "from" framing is honest, most files price near the bottom of the range when the four inputs all sit favourably, and price up when one or more sit higher.
What borrowers can do to influence pricing
Three levers.
Be transparent at submission. Volunteering adverse credit, tenancy issues, or sponsor structure questions up-front lets the credit team price the actual file rather than discovering the issue mid-process.
Document the exit. Files with a signed contract of sale or a conditional refinance offer price tighter than files with a vague intention.
Match LVR to security type. Pushing toward the cap on a marginal security type costs more than sizing conservatively on a strong one.
Frequently asked
Why isn't there a single published rate? Because file pricing depends on four inputs (security, LVR, sponsor, funding cost). A single rate would be misleading on most files.
Do private mortgage rates move with the RBA cash rate?Indirectly. The lender's cost of funds moves with wholesale markets, which the RBA cash rate influences. Published from-rates are reviewed quarterly.
Can I negotiate the rate? The rate reflects the credit team's pricing of the actual file. Genuine improvements to the file (stronger documented exit, additional security, lower LVR) move the rate; conversation alone usually doesn't.
What's the difference between rate and total cost?Rate is annualised interest; total cost adds the establishment fee, legal costs, valuation, and any line fees over the loan term. Use the bridging cost calculator to model a specific file.
Are private mortgage rates published? From-rates are published per product on the statistics page. File-specific pricing is set by the credit team.