A Bullet Loan is a short-term financing option where the borrower repays the entire principal amount at the end of the loan term, rather than making regular repayments. This loan type is commonly used for business purposes, property developments, or bridging finance, offering flexibility and immediate cash flow benefits.
Benefits for Borrowers
Flexible Payment Structure
Pay only interest during the term and settle the principal in one lump sum at the end.
Short-Term Financing
Ideal for short-term projects or investment needs where cash flow is expected to improve in the near future.
Quick Access to Funds
Bullet loans provide fast access to capital, making them perfect for time-sensitive opportunities
Customisable Terms
Tailored loan terms to suit the specific needs of your business or project.
Benefits for Mortgage Brokers
Expanded Product Offering – As a mortgage broker, offering Bullet Loans allows you to provide your clients with flexible financing options for short-term needs.
Increased Client Satisfaction – Bullet loans offer your clients the cash flow relief they need while still securing the financing they require.
Competitive Edge – By partnering with Mortgage Street, you can offer a unique product that many other lenders may not provide, helping you stand out in the market.
Features
Interest-Only Payments – Borrowers only pay interest during the loan term, freeing up cash flow.
Loan Term – Bullet loans are typically short-term, ranging from a few months to a few years.
No Regular Principal Repayments – The full loan amount is repaid at the end of the term.
Flexible Use – Suitable for a range of purposes, such as business investment, property purchases, or development projects.
Partner with Mortgage Street Today – Become a broker partner and access Bullet Loans in Receptive & Liberal. Our team is ready to assist you with all your Bullet Loan inquiries and client needs.
As Australia’s premier alternative lending solution, our mission is to empower our brokers to achieve their goals
Our goal at Mortgage Street is to provide you your customers with first-class service and innovative products to help you deliver solutions to your clients who don’t fit traditional lending criteria. But if your clients don’t qualify for a bank loan, Mortgage Street can always find alternatives. With 24 mortgage options available, we can help your customers find the right fit for their unique situation.
7 reasons why you should work with Mortgage Street
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
Mortgage Street is committed to providing a modern, efficient service to our clients. By distributing home loans through professional Australian mortgage brokers, we can offer a convenient and streamlined digital process that allows you to apply for a loan, submit documents, and track the progress of your application from the comfort of your own home.
A Mortgage Street accredited mortgage broker can help you to maximise your borrowing capacity by advising on the best loan structure and providing guidance on how to strengthen your application. This can be helpful if you have a complex financial situation or are self-employed.
If you are planning to purchase an investment property, a Mortgage Street accredited mortgage broker can help you understand the tax implications of negative gearing and advise on the best home loan options to suit your goals.
A Mortgage Street accredited Mortgage brokers have access to a wide range of lenders, including those that may consider larger loan amounts. This can be especially useful if you are looking to purchase a more expensive property or undertake extensive renovations.
Many lenders require mortgage insurance for home loans with a loan-to-value ratio (LVR) of over 80%. By working with a Mortgage Street accredited mortgage broker, you may access lenders that do not require mortgage insurance up to an LVR of 85%, saving you money on your loan.
To help you find what you’re looking for, we’ve grouped our lending criteria into key categories.
Turbo charge your application for faster turnaround times
Mortgage Street focuses on what you and your customer needs.Submit a scenario now and we’ll help you every step of the way
Helpful guides & forms
- MSt 001 Customer Information Collection
- MSt 002 Payroll Authority form
- MSt 003 Loan Scenario form
- MSt 007 Applicant details verification
- MSt 011 Lo-Doc Declaration Accountants Verification
- MSt 012 Full Partial Discharge Authority
- MSt 013 Rate Review Form
- MSt 014 Gift Declaration Form
- MSt 015 Direct Debit Request
- MSt 028 Buying Your First House
- MSt 063 Bespoke broker premium
- MSt 067 Everyday transaction account
- Loan Application Documentation Checklist
- MSt 134 Request for Hardship Assistance
Don’t let your unique situation hold you back, explore the all mortgage options offered by Mortgage Street.
Good Borrowers
Specialist loan
Relocation loan
Convenient calculators
FAQ
How does a bullet loan differ from traditional loans?
Traditional loans typically involve regular payments that cover both principal and interest, gradually reducing the loan balance over time. In contrast, bullet loans require only interest payments during the term, with the full principal due at maturity
What are the risks associated with bullet loans?
The primary risk is the substantial lump-sum payment due at maturity. Without adequate funds or a clear repayment strategy, borrowers may face financial strain or need to refinance under potentially less favourable terms.
In what scenarios are bullet loans commonly used in Australia?
Bullet loans are often utilised in commercial real estate financing and large-scale projects, such as infrastructure developments, where borrowers anticipate substantial returns or asset sales before the loan's end.
What should mortgage brokers consider when recommending bullet loans?
Brokers should assess the client's cash flow projections, the purpose of the loan, and the client's ability to make the lump-sum payment at maturity. It's crucial to ensure that clients have a clear exit strategy or plan for refinancing if necessary.
Are bullet loans suitable for all borrowers?
Bullet loans are generally more suitable for borrowers with specific financial strategies, such as businesses expecting significant future income or asset sales. They may not be ideal for borrowers without a clear plan for the lump-sum repayment.
Broker Support
Monday to Friday 9am – 5pm (Sydney time)
Frequently Asked Mortgage Product Questions
Key points
+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Loan applications, refinances and balloon amounts are subject to credit assessment.
Conditions, credit criteria, fees and charges apply. Based on Mortgage Street’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.