$3M Second Mortgage Refinance Across NSW: Avoiding Default Penalties from a Private Lender
Location: Multiple properties across NSW
Loan Type:Second mortgage refinance
Loan Amount: $3 million
Problem: Imminent loan expiry with lender demanding repayment and threatening default interest
Solution: Secured Lending refinanced the loan within a week, using second mortgages to prevent financial fallout
Just days before a $3 million private loan was due to expire, the borrower—represented by an experienced finance broker—was blindsided by a change in stance from the lender. Despite verbal reassurances of an extension, the lender suddenly advised that “the investor wants their money back.” This was not just a request. It was a warning: either repay in full or face significant default fees and penalty interest.
The pressure was immediate and serious. With limited time and limited options, the broker turned to us.
Taking Control Where the Private Lender Couldn’t
The borrower had multiple NSW-based properties with solid equity but was now stuck with a lender that, due to their structure, had no control over investor behaviour. This lack of internal control is a known risk in private lending—when investor funds are pooled or fractional, the lender may promise flexibility, but cannot always deliver.
Secured Lending stepped in quickly. We assessed the available securities, which consisted of several residential and commercial assets with existing encumbrances. Our team structured a second mortgage across these properties to raise the $3 million required to refinance the expiring loan in full.
Legal documentation was fast-tracked. Our lending team and legal partners coordinated with the outgoing lender and broker to ensure no delays. The refinance settled before the expiry date, avoiding default entirely.
Second Mortgages: A Lifeline for Urgent Refinance
Second mortgages often come into play when refinancing a loan where a full first mortgage refinance is not feasible in the short term. In this case, it allowed the borrower to:
Access the equity in multiple properties without disturbing existing loan facilities
Refinance on urgent terms without waiting on a slow bank process
Avoid default fees and maintain financial stability
We didn’t just provide capital. We provided certainty.
Key Takeaways for Brokers
For brokers, this scenario highlights two important truths:
Never take verbal lender assurances as certainty—especially with private lenders reliant on investor behaviour.
Always have a backup plan when dealing with lenders who don’t have full control over their loan books.
Secured Lending is purpose-built for scenarios like this. We understand short-term pressure, complex property portfolios, and how to structure second mortgages to move fast.
If you have a client with a loan deadline fast approaching or facing refinancing pressure, reach out to Gino Tabila on 0416 798 187 or email info@securedlending.com.au. We’re here to help you deliver results under pressure.
