Private Lending — How Our Fees Work
Private lending fees are structured differently to our advisory brokerage services. This page explains how and why — so you can make an informed decision before signing anything.
Guide only. The information on this page is a general overview. Your specific obligations will be set out in the mandate and engagement letter you sign with us. You are always welcome to take independent legal advice before signing — and we encourage it.
How It Works — Start to Finish
Before we do any work, we provide you with a mandate setting out our scope and fees. You can review it, ask questions, negotiate, and take independent advice — there is no pressure to sign. We only start work once the mandate is agreed and executed.
Once the mandate is signed, we get to work. By the time a lender issues a letter of offer, we have typically completed the following:
- Assess your deal and confirm the financing is achievable
- Search our lender panel to identify the right match for your transaction
- Prepare a credit submission and present your deal to the lender
- Negotiate the loan amount, rate, term, and conditions on your behalf
- Receive and review the formal letter of offer from the lender
In other words, by the time a letter of offer lands, the job we were mandated to do — find you a willing lender on agreed terms — is effectively done. That is why our brokerage fee becomes payable at that point, not at settlement.
Two Important Things to Understand
These are the two ways private lending fees differ from standard brokerage. We want you to understand both clearly before you sign anything.
Our Fee Is Earned at the Letter of Offer
Because we are mandated to find a lender for your transaction, our brokerage fee is payable once a lender has issued a formal letter of offer — not at settlement. This reflects the work already completed on your behalf.
In most cases we are happy to defer actual payment until settlement as a courtesy, but the fee obligation arises at the letter of offer stage. If the loan does not settle after that point, the brokerage remains payable.
Security Interests Are Standard in Secured Lending
As with any secured loan, the lender will register a mortgage or caveat over the property offered as security. This is standard practice — it simply protects their position as a secured creditor until the loan is repaid.
Where broker fees remain outstanding, Andorra Private may also register a security interest over the property. All registrations are discharged once the loan has settled and fees are paid.
Costs You May Encounter
Every cost will be clearly disclosed to you in writing before you are asked to commit. Nothing comes as a surprise — that is our standard.
Brokerage Fee
Our fee for sourcing and securing the lender commitment on your behalf. Payable on signing the letter of offer — this reflects the work already completed to get you to that point. We are happy to defer payment to settlement where appropriate, but the obligation to pay arises on signing.
Commitment Fee
A lender fee confirming they are holding the facility for you. This is charged by the lender directly and is payable regardless of whether the loan proceeds to settlement.
Valuation Fee
The cost of an independent property valuation required by the lender to confirm security value. Ordered once you have decided to proceed and payable regardless of outcome.
Legal Fees
The lender's legal costs for preparing loan documentation. These are standard in all secured lending and are payable regardless of whether the facility ultimately settles.
Registration & Discharge Fees
Government charges for registering and discharging the mortgage or caveat over your property. These are standard statutory costs in every secured loan transaction.
Looking for Our Advisory Fee Structure?
For commercial finance advisory and brokerage, we use a success-based model — a small upfront fee plus a success fee only payable if the finance settles.
Read our Advisory Fee GuideHave Questions About Fees?
We are happy to walk you through every cost before you sign anything. No pressure — just a straightforward conversation about what applies to your transaction.