$450K Second Mortgage to Clear ATO Debt Before a Refinance

5 November 2026

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Loan Amount: $450,000
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Security: Second mortgage over a residential investment property
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Use of Funds: Repayment of ATO debt
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Loan Term: Short-term bridging facility
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Exit Strategy: Refinance with a mainstream lender
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Outcome: ATO debt cleared, then refinanced into a lower-cost loan
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Loan Product Type: Second Mortgage

The Scenario

A property investment company had built up debt with the Australian Taxation Office after a difficult trading period. It planned to refinance, but mainstream lenders would not proceed until the ATO debt had been addressed.

The Solution

Secured Lending provided a $450,000 second mortgage over a residential investment property, written as a short-term bridging facility. The loan gave the company the money to pay the ATO immediately, without using its cash reserves, and the refinance could then go ahead.

The Outcome

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All outstanding ATO debt was cleared
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The company kept its cash reserves
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The company then refinanced into a lower-cost loan with a mainstream lender, which was the planned exit from our facility

Why This Scenario Required a Private Lender

The mainstream lenders would not refinance while the ATO debt was outstanding. We assess the property and the exit, so the company could pay the ATO first and refinance afterwards.

If a lender has told you to clear your ATO debt before it will refinance, talk to us. We would be glad to look at your property and your exit plan.