$2.155M Second Mortgage Working Capital Facility Across Brighton and Cremorne

28 September 2026

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Loan Amount: $2,155,000
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Location: Brighton and Cremorne, VIC
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Security: Second mortgages over two owner-occupied residential properties, with a combined value of more than $10,500,000
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Use of Funds: Short-term working capital
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Exit Strategy: Refinance
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Loan Product Type: Second Mortgage

The Scenario

The borrower had an urgent working capital requirement of a little over $2 million.

Two owner-occupied homes, one in Brighton and one in Cremorne, were available as security. Each property already carried a first mortgage with its existing lender. Together the two homes were worth more than $10.5 million, and the first mortgages used only part of that value, leaving substantial equity in both.

A refinance was already planned and would repay the new facility. What the borrower needed was the working capital now, rather than after the refinance had been through a bank's full approval process.

The Solution

Secured Lending settled a $2.155 million short-term second mortgage facility, secured by a second mortgage over each of the two homes.

The existing first mortgages stayed in place on both properties, so the borrower did not need to discharge or renegotiate either of them. Taking security over both homes meant the facility was supported by more than $10.5 million of property rather than by one home alone, which is what allowed a facility of this size to be approved quickly.

When the refinance settles, it repays our facility in full and both second mortgages are discharged.

The Outcome

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$2.155 million in working capital provided on a short-term facility
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Secured by second mortgages over two owner-occupied homes in Brighton and Cremorne
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Combined property value of more than $10.5 million behind the facility
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Existing first mortgages on both homes left untouched
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Repayment set to come from a planned refinance

Why This Scenario Required a Private Lender

Most banks will not lend on a second mortgage behind another lender's first mortgage, and very few will take security over two properties for a single short-term facility. Where a bank does consider it, the approval process usually takes weeks.

A private lender assesses the same request on three questions: what the properties are worth, what is already owed against them, and how the loan will be repaid. Here the answers were two homes worth more than $10.5 million, existing first mortgages well below that value, and a refinance already planned. That is enough for us to approve and settle a facility above $2 million on a short timeline.

If you need a multi-million dollar facility and the property you can offer already carries a first mortgage, speak to our team. We lend across Melbourne and the rest of Australia, and can usually give an indicative answer the same day.