A private mortgage is a home loan financed through a private source of funds, whether that be a bank, broker, or private lender. Deciding whether a private loan in Australia is right for you can be tricky as there are many options available, however, if you are financing your home or an investment property, then a private mortgage is right for you. There are two types of private mortgages in Australia, a fixed-rate mortgage and a variable rate mortgage. A fixed-rate mortgage is when the interest rate is locked in for a certain period of time, this is generally good for borrowers who want to budget with certainty. On the other hand, a variable rate mortgage is when the interest rate can change over the life of the loan. If the interest rate goes up, your repayments will increase.