A second mortgage on commercial property sits behind the existing first mortgage and accesses the equity between the current first mortgage balance and the property's market value. The advantage over refinancing is that the first mortgage lender relationship is not disturbed. The borrower keeps their existing bank facility, often at favourable rates or under grandfathered terms they would lose if they refinanced, while accessing the capital they need through the second mortgage.
Who This Is For
- •Borrowers with an existing bank first mortgage wanting to access equity without refinancing the whole facility
- •Borrowers whose bank has declined an equity release or top-up on the first mortgage
- •Borrowers with favourable first mortgage terms they do not want to disturb by refinancing
- •Businesses needing to raise capital quickly against commercial property equity for a time-sensitive purpose
- •Borrowers using a second mortgage as a short-term bridge while a longer-term solution is arranged
- •Available to Pty Ltd companies and family trusts — not available to individuals in personal name or for residential property or consumer lending
How We Assess Commercial Property Second Mortgages
Our assessment begins with the current market value of the commercial property and the outstanding balance of the first mortgage. The second mortgage amount is calculated so that the combined LVR across both loans does not exceed 70% of the property value. We arrange our own in-house valuation if a current independent valuation is not available.
We do not require consent from the first mortgage lender to register a second mortgage, though we confirm the first mortgage terms do not prohibit further encumbrances. Most standard commercial mortgage terms permit second mortgages subject to the combined LVR remaining within the agreed limit. We work with your solicitor to confirm the position before proceeding.
Submit your scenario with the commercial property details, the first mortgage balance, and the second mortgage amount required. Same-day indicative response. Letter of offer within 24 hours of agreed terms. Settlement from 24 to 72 hours for clean deals.
Three Second Mortgage Scenarios We Have Recently Helped
A Pty Ltd company held a commercial office building with a bank first mortgage at a fixed rate secured until the following year. The company needed $900,000 for a business opportunity. Refinancing would have broken the fixed rate at significant cost. We provided a second mortgage at 68% combined LVR. The company used the funds, then discharged the second mortgage when the fixed rate period ended and the bank could consolidate. Loan: $900,000, 14-month term.
A family trust owned an industrial property with a bank first mortgage at 38% LVR against current value. The trust needed to fund a tax debt quickly. The bank declined a top-up citing the purpose. We registered a second mortgage and released $650,000. The ATO liability was settled. The exit was the trust's annual bank review, at which point the bank consolidated the second mortgage into the first. Loan: $650,000, 9-month term.
A Pty Ltd company had an existing commercial property portfolio with two assets carrying bank first mortgages. It needed capital for a third acquisition. The bank declined an equity release on either existing property. We provided second mortgages across both properties simultaneously, releasing enough capital for the acquisition deposit and costs. Combined second mortgage: $1.4 million. Both facilities discharged when the company completed its bank review 11 months later.
Speed and Process Advantage
We hold direct credit authority with no external committee. Second mortgage registration, property valuation, and underwriting run concurrently. For borrowers who need capital from commercial property equity without the delay or disruption of a full refinance, we provide an indicative position the same day and can settle within 24 to 72 hours for clean deals. The second mortgage structure adds no material time to our standard process.
"A second mortgage on commercial property gives borrowers access to equity without requiring them to touch a first mortgage that may have been negotiated under better terms or with a lender relationship worth preserving. We see this structure used effectively by investors recycling equity for a new acquisition and by businesses accessing capital against a property they own. When the combined LVR is within range, the structure is clean and the outcome is fast."
Gino Tabila
Associate Director
Benefits of Using a Private Mortgage Lender for a Commercial Property Second Mortgage
A second mortgage from a private mortgage lender is one of the most efficient ways to access equity from commercial property. It leaves the existing first mortgage completely undisturbed, avoids the cost and complexity of a full refinance, and can settle within 24 to 72 hours of a clean enquiry.
- •Access equity without touching or refinancing the existing first mortgage
- •No break costs, no rate renegotiation, no disruption to an existing bank relationship
- •Settlement within 24 to 72 hours — fast access to equity for time-sensitive needs
- •Suitable for working capital, tax liabilities, acquisitions, or any business purpose
- •Second mortgage position assessed on the combined LVR — existing first mortgage included
Our Loan Solutions
| Loan Type | Best used for |
|---|---|
| First Mortgage | Clean purchase or refinance over the commercial property — highest loan amounts, lowest rates. |
| Second Mortgage | Access equity behind an existing mortgage without refinancing the first. |
| Caveat Loan | Fastest equity access — registered as a caveat, not a mortgage. Settled in hours. |
| Debt Consolidation | Combine multiple business debts into one secured facility. |
| Bridging Finance | Complete settlement now while permanent finance is arranged. |
| Emergency Finance | Urgent capital for ATO debt, winding-up applications, or time-critical situations. |
| Refinance | Replace an existing loan that is maturing, under pressure, or no longer working. |
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Case Studies
$3M Working Capital for IT Business Expansion Settled in 2 Business Days
$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
$1.15M ATO Debt Cleared in 4 Business Days for Prahran Pub Operator
$250K Working Capital for Brisbane Café in 36 Hours
Case Study: Bridging the Payment Gap – How a Short-Term BLOC Saved a Commercial Builder's Project
$1.1M in 72 Hours: How We Helped A Developer Get Back on Track
$450,000 Caveat Loan Against Commercial Property Saved Sydney Café From Insolvency
$1.3M Second Mortgage Helped Bankstown Industrial Borrower Clear Tax Debt and Refinance
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Scenarios We Can Help With
Browse our full range of services, industries, locations, and resources to find the right financial solution for your needs.
Our Loan Solutions
Bridging Finance
Short-term funding to bridge the gap between a property purchase and a longer-term finance solution.
First Mortgage
Private first mortgage loans secured against residential, commercial, or industrial property.
Second Mortgage
Unlock equity in your property without refinancing or disturbing your existing first mortgage.
Caveat Loans
Urgent caveat loans secured by property. No need to refinance your existing mortgage.
ATO Tax Debt
Fast funding to help businesses resolve ATO obligations before penalties, garnishees, or director penalty notices escalate.
Debt Consolidation
Roll multiple high-rate facilities into one property-backed loan. Simplify repayments and restore cash flow.
Urgent Business Loans
When timing is critical and banks can't move fast enough, we step in. Property-secured funding for businesses that need an answer today — not next week.
Refinance
Replace an existing loan that is maturing, under pressure, or no longer working. We move fast and lend where banks won't.
