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$2.3M Second Mortgage Refinances an 18% Facility for a Glass Manufacturer

19 August 2026

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Loan Amount: $2,300,000
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Location: Surfers Paradise, QLD
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Security: Owner-occupied residential property, valued at approximately $17,000,000
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Combined LVR: Approximately 52%
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Term: 6 months
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Use of Funds: Refinance of an existing second mortgage, plus business working capital
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Exit Strategy: Sale of the secured property, already on the market
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Loan Product Type: Second Mortgage

The Scenario

The borrower runs an established glass manufacturing and supply business. The business itself was not the problem. The problem was the cost of the debt sitting behind it.

An existing $1.8 million second mortgage was priced at roughly 18 to 20% per annum. On a facility of that size, the difference between that rate and a market rate is a meaningful monthly number, and every month it went unaddressed was money out of the business rather than into it. On top of the refinance, the borrower needed additional funds to support the working-capital cycle that a manufacturing and supply operation runs on.

Two needs, one solution: replace the expensive facility and release extra capital in the same transaction.

The Solution

Secured Lending structured a $2.3 million short-term second mortgage against an owner-occupied residential property at Surfers Paradise valued at approximately $17 million.

Because the security sits behind an existing first mortgage, the combined loan to value ratio matters more than the size of our facility on its own. At approximately 52% combined, the position carried a substantial equity buffer. The property was already being marketed for sale, which gave the transaction a clean and dated exit rather than a hoped-for one.

Our second mortgage rates start from 11.95% p.a., against the 18 to 20% the borrower had been carrying. The refinance also gave the business a single facility on a single term rather than a legacy arrangement priced for a different set of circumstances.

The Outcome

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$2.3 million second mortgage facility structured over a 6-month term
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Existing $1.8 million second mortgage at roughly 18 to 20% p.a. refinanced
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Additional funds released for business working capital
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Combined LVR held at approximately 52%, leaving substantial equity protection
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Clear exit through the sale of the secured property, already being marketed

Why This Scenario Required a Private Lender

A bank looks at this and sees an existing second mortgage, a manufacturing business, and a short window. That combination usually stops a mainstream credit process before it starts, regardless of how much equity is in the property.

A private lender looks at the same file and sees a $17 million asset carrying a combined LVR of about 52%, a business that trades, and a sale campaign already underway. The security and the exit carry the deal, which is why the assessment takes hours instead of a credit committee cycle.

It is worth being precise about what the security is here, because manufacturers often assume otherwise. We lend against real property, never against plant, machinery or tooling. On a manufacturing scenario the security is the residential, commercial or industrial property the borrower or the business owns. What the released capital then buys, whether that is materials, tooling or labour, is a separate question entirely.

If you are carrying a second mortgage priced well above market, or you need a multi-million dollar facility settled on a short timeline, speak to our team. We can usually give an indicative answer the same day, anywhere in Australia, including across the Gold Coast.