Second Mortgage Loans for Business, Funded Fast

We need to learn your scenario further. A second mortgage sits behind your bank loan and is a separate loan, but your bank loan's terms decide how the bank treats a second mortgage, so ask the bank, or have your solicitor check the loan terms, before you proceed. Combined lending can reach 70% of $2.4 million, which is $1.68 million, and with $1 million owing to the bank that leaves room for up to $680,000, more than the $500,000 you need. Our second mortgage rates start from 11.95% p.a.

Yes. Combined lending against the office property can reach 70% of $2.5 million, which is $1.75 million. With $900,000 owing to the bank, that leaves $850,000, enough for the $700,000 buyout. The security is the office property, not the shares you are buying. Tell us how you plan to repay the loan, such as a refinance once the buyout is complete, because that sets the term.

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The first mortgage is repaid first. After the costs of the sale, the sale money repays the first mortgage, then the second mortgage, and whatever remains is paid to you. Because our lending stays within 70% of the property's value, a sale near that value should leave you with a balance. Ask your solicitor for a settlement statement before the sale so you can see the exact figures.

We use the value our in-house valuation team assesses. At $2.2 million, combined lending can reach $1.54 million, leaving $540,000 after the bank's $1 million. At $1.9 million, it is $1.33 million, leaving $330,000. Plan around the lower figure until our assessment is done. If you need the higher amount, a second property can be added as additional security.

Yes. A registered second mortgage is recorded on the title, so any lender searching the title sees it. A bank refinance normally repays both mortgages at settlement, which is how the second mortgage is cleared. That makes the bank refinance your exit, so ask the bank what it will need to see in a year, and pick a term with some margin past that date.

Not against that home on its own, because it is already at our 70% limit. A second property can be added as additional security. For example, with an investment unit worth $800,000 and $200,000 owing on it, the combined value is $2.8 million, 70% of that is $1.96 million, and with $1.6 million owing across both, about $360,000 is available. Tell us about every property you own and what is owing on each, so we can see which combination works.

That is a question for your accountant to decide, because it depends on how the money is used. What we can provide is the loan documents, which show the company as the borrower and the purpose of the loan. Send your accountant those documents once the letter of offer is issued, so they can advise before settlement.

Yes. One second mortgage for $450,000 can pay all three, as long as combined lending on the property stays within 70% of its value. The security is the property, never the equipment. The loan funds are paid to your business, which pays the finance company, the bank and the ATO. Send us the three payout figures and your property details.

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Yes, it is quicker. Decisions come back in hours, and settlement can follow within 24 hours of approval, without touching your bank loan. Our second mortgage rates start from 11.95% p.a. Put that next to the rate your bank quoted for the top-up, and weigh the difference against what missing your ten day deadline would mean for the business.

Yes, it is, and there is a shorter product built for it. Our low cost second mortgage runs for one to three months, from 11.95% p.a. for a one month term, so a six week need fits its two month term. The standard second mortgage runs from 1 to 24 months. Tell us the date the customer payment is due and we will set the term around it.

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Yes, and it is one of the most common and effective use cases for second mortgage private finance. Most banks will not refinance a borrower who carries active ATO debt because it creates a priority creditor risk. By using a second mortgage to clear the ATO debt first, you remove that obstacle and can approach your bank from a clean position. Borrowers in this situation often refinance back to mainstream lending within 6–12 months once their tax compliance is restored.

Not necessarily. In many cases the reason a bank says no is the exact reason a private lender can say yes. Banks assess borrowers primarily on income, credit score, and liability profile. Private lenders assess the security property and the exit strategy. If a bank declined you because of ATO debt, irregular income, a trust structure, or a previous credit event, those factors carry significantly less weight with a private lender.

As a general guide, you'll need enough equity in your property to keep the combined LVR across your first and second mortgage at or below 70% for residential and commercial. If your property has appreciated significantly since you took out your first mortgage, you may have more usable equity than you realise.

Secured Lending does not lend to individuals. We only lend to companies, family trusts, unit trusts, and SMSFs subject to compliance requirements.

To get a preliminary assessment, you need very little: a rough idea of your property value, your first mortgage balance, and what you need the funds for. To proceed to formal approval, you'll typically need: a copy of your current first mortgage statement, a recent rates notice or evidence of property ownership, identification documents, a statement of the loan purpose, and details of your proposed exit strategy.

Not directly. The 70% combined LVR ceiling applies to every second mortgage we write, clean file or not. What a poor credit file can change is the rate and the conditions, because the exit carries more weight when the history is untidy. Where your exit is a sale or a refinance already in motion, the pricing usually lands where it would for anyone else.

Yes. A second mortgage leaves your first mortgage in place, which is why it suits deadlines such as an ATO debt, a pay run or a partner buyout.

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